On September 5, Nazara Technologies announced that it has inked a memorandum of understanding (MoU) with the Telangana government to establish an artificial intelligence center of excellence with a focus on gaming and digital entertainment.

This action is being taken as the nation's first publicly traded diversified gaming and sports media company strives to use AI and cutting-edge technology into a wider range of its commercial ventures.

The AI center will use technologies including artificial intelligence (AI), virtual reality (VR), augmented reality (AR), blockchain, and Web 3.0 to promote research, development, and innovation in fields like gaming, interactive media, and gamified learning.

Founder of Nazara Technologies Nitish Mittersain had stated that the company was placing a lot of emphasis on these new technologies. "Telangana’s proactive approach in fostering industry growth through public-private partnerships and policy development has created the ideal ecosystem for this initiative," Mittersain said.

The collaboration with Nazara Technologies, according to Telangana's Minister of Information Technology and Industries D Sridhar Babu, is a big step toward establishing the state as a leader in AI-driven digital innovation worldwide.

"A diversified and dynamic ecosystem will be created by the Nazara AI CoE, which will also empower entrepreneurs, improve skills, and draw investments in cutting-edge technology. We are dedicated to fostering economic expansion and establishing new benchmarks for ethical AI applications in gaming and other fields, and we are excited to collaborate with Nazara on this," he stated.

On July 31, the IT-BT department of Karnataka and ABAI signed a memorandum of understanding to create the AVGC Center of Excellence (CoE) 2.0. Through improved facilities and technology, this three-year alliance hopes to promote the AVGC (Animation, Visual Effects, Gaming, and Comics) industry.

The change occurred along with the release of the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) Policy 3.0 (2024–2029) operating guidelines by the Karnataka government.