L&T Tech to sell smart world portfolio to AM Group-backed AMI Paradigm Solutions

New Delhi: L&T Technology Services Ltd is set to sell its smart world and communication (SWC) business to AMI Paradigm Solutions Pvt Ltd, a newly formed entity backed by renewable energy company AM Group and digital public infrastructure developer ParadigmIT Services Technology Pvt Ltd.

AMI Paradigm (AMIPS), in a statement, said it has signed a binding agreement for the acquisition, which is expected to close by July 2026, subject to customary approvals. The financial details of the transaction were not disclosed.

The entity has been set up by AM Intelligence Labs Pvt Ltd, promoted by the founders of the Greenko Group, and ParadigmIT.

The deal comes as AM Group advances plans to invest about $25 billion to build a 1 GW high-performance computing hub in Uttar Pradesh, underscoring its push into AI infrastructure.

The SWC portfolio, spanning smart infrastructure and public systems across India and overseas, is expected to strengthen AMI Paradigm’s capabilities to deploy AI-led solutions for governments, cities, utilities, and transport networks.

The company said the acquisition aligns with its strategy to build a fully integrated AI platform—from carbon-free power and data centres to chips, software, applications, and flexible consumption models from accelerator as a service to tokens as a service.

The company said AM Group is developing an end-to-end value chain that transforms on-demand clean electron into intelligent compute tokens through its AM Intelligence platform. It expects AI-driven governance, public safety, defence, and intelligent infrastructure platform workloads to consume 10–20% of inference demand in mature AI markets.

“The smartworld & communication business will support in operationalizing AI for mission-critical systems across governments, cities, utilities, transport networks, and enterprises, enabling more autonomous, data-driven infrastructure and decision-making,” said Anil Chalamalasetty, chairman, AM Group.

AM Group is in the process of establishing the first phase of its planned 1 GW AI hub, comprising 250 MW capacity in the land parcels allocated by Yamuna Expressway Industrial Development Authority in Uttar Pradesh.

L&T Technology Services CEO and managing director Amit Chadha said the divestment is part of a sharpening of its focus on software and digital manufacturing in mobility, sustainability and technology segments.

The global market size of AI in government services is currently estimated at roughly $25 billion and is projected to reach nearly $100 billion by the early 2030s, growing at approximately 20% annually as governments deploy AI to automate services, enhance security, and enable data-driven policy-making, according to AMI Paradigm.