The Gujarat state government approved the establishment of the Indian Artificial Intelligence Research Organization (IAIRO) at GIFT City, Gandhinagar, with an allocated budget of ₹300 crore. The organization is set to become operational from January 1, 2026, and will focus on foundational AI research, large language models for Indian languages, and AI applications in healthcare, agriculture, and governance.

GIFT City (Gujarat International Finance Tec-City) is India's first operational International Financial Services Centre (IFSC). The establishment of IAIRO aligns with India's National AI Mission announced in the Union Budget 2024-25 with a ₹10,372 crore outlay. IAIRO will collaborate with IITs, IIITs, and global tech firms for talent development and will offer compute infrastructure for Indian startups working on AI models.