TECHNOLOGY

India picks 8 firms, including IIT Bombay, to build a massive 1 trillion parameter AI model

India's artificial intelligence mission is advancing with the government selecting eight organizations, including IIT Bombay, Tech Mahindra, and Fractal Analytics, under the IndiaAI Mission to build foundational Large Language Models (LLMs

The most ambitious of these projects is being led by IIT Bombay through its BharatGen consortium. The institute has been tasked with developing an LLM that will have one trillion parameters, a scale that places it among the largest AI models currently being attempted anywhere in the world. To support this effort, the IndiaAI Mission has approved financial assistance worth Rs. 988.6 crore.

The full list of entities announced includes Avataar AI, IIT Bombay Consortium – BharatGen, Fractal Analytics Limited, Tech Mahindra Ltd, Zeinteiq Aitech Innovations, Genloop Intelligence Pvt. Ltd., NeuroDX (Intellihealth) and Shodh AI. Each of these organisations will play a role in building foundational LLMs aimed at different applications.

These entities will focus on diverse applications across sectors like agriculture, finance, health, and education. Additionally, the government plans to soon unveil an AI governance framework, developed jointly by MeitY and the Principal Scientific Adviser's office, to guide responsible AI development and deployment in India.

Zoho to scale AI solutions with Dell AI Factory, Nvidia partnership

Zoho Corporation, the Indian multinational company, is using Dell AI Factory, which uses chipmaker Nvidia's infrastructure and software, to “power” its proprietary AI offerings.

This collaboration enables Zoho to power its proprietary large language models and AI tools on a high-performance, secure, and scalable platform, supporting over 130 million users globally. The integrated Dell PowerEdge servers with Nvidia acceleration facilitate rapid AI innovation, efficient model training, and seamless deployment while ensuring data sovereignty and privacy compliance aligned with Indian regulations.

This partnership strengthens India's AI ecosystem by delivering practical, context-aware enterprise AI solutions that enhance business automation and insights without compromising trust or performance.

Cybersecurity firm Netskope notches $8.8 billion valuation as shares jump in Nasdaq debut

Cybersecurity firm Netskope debuted on Nasdaq with a market valuation of $8.79 billion as its shares surged 21%, opening at $23, well above the $19 IPO price.

Founded in 2012 and based in Santa Clara, Netskope provides cloud-based security software to protect apps, websites, and data amid rising AI-driven cyber threats, driving strong demand

The IPO raised $908.2 million through the sale of 47.8 million shares at the top of the $17-$19 range. CEO Sanjay Beri highlighted the IPO's high demand, oversubscribed 20 times, and said going public will boost Netskope's visibility and customer reach.

ECONOMY

Strong demand to keep India's growth at 6.5% in FY26

India's economic growth is expected to remain robust at 6.5% in FY26, driven primarily by strong domestic demand due to reductions in GST rates on household items, and accelerating government investment. While private investment remains sluggish, government capex continues to fuel growth.

However, rising US tariffs and weakening exports pose downside risks.

Inflation in India is expected to drop to around 3.2%, making it easier for the Reserve Bank of India to lower the interest rates. This will also help to support continued economic growth by encouraging people to spend more.

The first round of negotiations for FTA with the Eurasian Economic Union (EAEU), most likely to begin in November

India and the Eurasian Economic Union (EAEU), comprising Russia and four other nations, are set to hold the first round of negotiations for a Free Trade Agreement (FTA) in early November 2025 in India, following a recent meeting between EAEU Trade Minister, Andrey Slepnev and Indian Commerce Minister, Piyush Goyal. This FTA is expected to provide Indian exporters access to a $6.5 trillion EAEU market, fostering fair competition and diversification into new sectors.

Ahead of the talks, intensive consultations will be conducted between the parties. Concurrently, India is reviewing its FTA with ASEAN, with the next meeting scheduled for October 6-7, as part of its broader strategy to expand and deepen trade partnerships globally.

ESG

Microsoft signs $6.2 Billion Deal for 100% Renewable Energy Powered AI Computing Capacity

Microsoft has signed a $6.2 billion, five-year agreement with AI hyperscaler Nscale and industrial investment company Aker to secure AI computing power from the Stargate Norway project, a large-scale AI infrastructure facility powered entirely by renewable energy.

Located in Norway, the project will use abundant hydropower and advanced industrial infrastructure to provide secure, scalable, and energy-efficient AI services across Europe, with deployment starting in 2026.

This initiative supports Microsoft's sustainability goals by addressing the growing demand for AI compute power while minimizing carbon emissions, reinforcing Norway's role in enabling sovereign AI infrastructure and advancing Europe's digital and sustainable future.

Mercedes-Benz to build one of the most powerful wind farms in Germany

Mercedes-Benz is set to build one of Germany's largest onshore wind farms at its test track site in Papenburg, with 20 wind turbines producing 140 MW of power by 2027.

This wind farm will supply about 20% of Mercedes-Benz's annual electricity needs in Germany and support the company's goal to cut production CO2 emissions by 80% by 2030.

The project is part of a 25-year power purchase agreement with energy developer UKA, helping Mercedes-Benz move toward using 100% renewable energy at all its production sites by 2039.

American airlines, Alaska Air lead new $150 million Sustainable Aviation Fuel Tech Fund

A group of airlines including American Airlines and Alaska Air have launched the one-world BEV Fund. A $150 million venture fund focused on advancing Sustainable Aviation Fuel (SAF) technologies.

Managed by Bill Gates-founded Breakthrough Energy Ventures, the fund aims to scale production and reduce costs of SAF, which can lower aviation greenhouse gas emissions by up to 85% compared to conventional fuels. Despite anticipated growth, SAF currently represents only 0.7% of total airline fuel consumption, hindered by high costs and supply challenges.

The fund targets breakthrough SAF technologies that offer competitive pricing, greater availability, and minimal environmental impact to support the aviation sector's decarbonization efforts and long-term sustainability.

Galvanize launches $1.3 billion strategies to finance energy transition value chain

Decarbonization-focused investment firm Galvanize announced the launch of its new Credit and Capital Solutions strategy, aimed at providing flexible financing solutions to back companies and projects across the energy transition value chain, and established with a $1.3 billion investment program from a leading institutional investor.

According to the firm, the new strategy is being launched to meet a growing need for flexible capital across power, manufacturing, efficiency, and resilience, with over $5 trillion anticipated to be invested in infrastructure like renewables, transmission, manufacturing, and electrification by 2030, which will mostly come through credit.

This new Credit and Capital Solutions strategy will be chaired by former Congress Member and CEO of HealthCare Financial Partners and CapitalSource John Delaney, and co-led by Chris Creed, formerly Chief Investment Officer of the U.S. Department of Energy's Loan Programs Office.

MERGER AND ACQUISITIONS

Nvidia takes $5 billion stake in Intel, offers chip tech in new lifeline to struggling chipmaker

Nvidia will invest $5 billion in Intel, throwing its heft behind the struggling U.S. chipmaker just weeks after the White House engineered an extraordinary deal for the federal government to take a massive stake in the company.

Nvidia's support offers Intel a new chance after years of turnaround efforts failed to pay off and triggered a 23% jump in the U.S. chip manufacturer's shares. The stake will make Nvidia one of Intel's largest shareholders, giving it roughly 4% of the company after new shares are issued.

This new pact includes a plan for the two companies to jointly develop PC and data center chips, but crucially, will not involve Intel's contract manufacturing business - or foundry - making computing chips for Nvidia. Intel's foundry business will, however, supply the central processors and advanced packaging for the joint products.

US Investors, including Murdochs and Ellison, to Control TikTok

The US TikTok deal involves a consortium of American investors, including media magnates Rupert Murdoch and his son Lachlan, Oracle founder Larry Ellison, and Dell Technologies founder Michael Dell, aiming to acquire TikTok's US operations to comply with US national security laws.

The deal, necessitated by a 2024 US law mandating ByteDance to divest TikTok's US branch, includes transferring control of TikTok's prized content recommendation algorithm to the new US-based ownership group. Oracle will oversee the algorithm and data security from the US, and the ownership group will mostly consist of American investors with ByteDance retaining less than 20% ownership.

President Donald Trump described the participants as "American patriots" and noted progress in US-China negotiations, with China signaling openness to the deal under market-based principles. The arrangement aims to ensure TikTok's continued operation in the US while addressing security concerns.

Heineken Buys Central American Assets in $3.2 Billion Deal

Heineken has announced a $3.2 billion cash deal to acquire the beverage and retail businesses of Costa Rica's Florida Ice and Farm Company (FIFCO), significantly strengthening its presence across Central America.

This acquisition includes the iconic Costa Rican beer brand Imperial, a major soft drink business with its own brands, and a PepsiCo bottling license. Heineken will acquire the remaining 75% stake in Distribuidora La Florida, FIFCO's beverage, food, and retail arm with over 300 retail outlets across Costa Rica, as well as operations in El Salvador, Guatemala, and Honduras.

The deal also encompasses a 75% stake in Nicaragua Brewing Holding, full ownership of Heineken Panama (previously partially owned), and FIFCO's beyond-beer operations in Mexico. Heineken's CEO Dolf van den Brink stated the acquisition opens new growth avenues and profit pools in Central America, a region gaining importance as sales volumes decline in Europe and the U.S. The transaction is expected to complete by the first half of 2026 and is forecasted to immediately boost Heineken's operating margin and earnings per share before exceptional items.

Pfizer to Buy Weight-Loss Drug Developer Metsera for Up to $7.3 Billion

Pfizer is set to acquire Metsera, a clinical-stage biotech specializing in weight-loss drugs, in a deal valued at up to $7.3 billion, including future milestone payments. This acquisition marks Pfizer's strategic re-entry into the growing obesity treatment market, which is expected to reach $150 billion by the early 2030s.

Metsera's portfolio includes innovative oral and injectable therapies designed for monthly dosing, offering potential best-in-class efficacy and improved patient convenience compared to current treatments.

The deal, approved by both companies' boards, is expected to close in the fourth quarter of 2025 and strengthens Pfizer's position against competitors like Novo Nordisk and Eli Lilly in the race for next-generation obesity drugs.

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