Goldman Sachs says India’s listed AI market could add up to $100 bn from IPOs

What the Goldman Sachs report says

Goldman Sachs’ India AI Complex, Part 2 estimates that the country’s listed artificial‑intelligence market could swell by $50 bn to $100 bn in market capitalisation over the next two to five years. The figure is based on a cohort of 84 private AI companies that the bank values at about $55 bn in total. If 25‑50 % of the 71 mid‑to‑late‑stage firms go public at an average four‑times their current valuation, the resulting IPOs would inject the projected $50‑$100 bn.

“We estimate approximately $50bn to $100bn in incremental market cap could be added to India’s listed AI complex from prospective IPOs over the next 2‑5 years, assuming 25‑50% of the ~70 mid‑to‑late stage Private AI Contenders (currently estimated at ~$54bn value) list at a weighted average 4x valuation step‑up,” the report said.

Why it matters for India

The analysis highlights a shift from a market dominated by AI‑infrastructure players to a broader ecosystem that includes data‑centre operators, enterprise AI services, conversational AI, cloud‑and‑data‑management, healthcare AI and computer‑vision firms. Such diversification aligns with India’s broader strategy of building a resilient, high‑tech economy that can attract global capital while generating domestic high‑value jobs.

Funding trends fueling the pipeline

Private‑equity investment in Indian AI startups has tripled since 2024, hitting around $5 bn in 2025 (up from $1.6 bn in 2024). By the first nine months of 2026, funding matched the full‑year total of 2025, putting the sector on track to set a new record. AI’s share of total PE allocations rose from about 5 % in 2024 to roughly 20 % in 2026.

The report also cites Stanford University’s 2026 AI Index, which places India sixth globally for private AI funding in 2025 and fourth for the number of newly funded AI companies, signalling the country’s growing stature in the global AI landscape.

Implications for investors and policymakers

For retail and institutional investors, the projected IPO wave offers a fresh avenue to tap into India’s AI growth story, complementing the already massive $670 bn listed AI‑enablers cohort identified in part 1 of Goldman’s research. Policymakers can leverage this momentum by streamlining listing requirements, strengthening data‑centre infrastructure, and encouraging talent pipelines in AI research.

In a broader sense, the forecast reinforces India’s narrative of stable governance, robust infrastructure development, and an ascending role on the world stage—key themes the government has repeatedly highlighted in its economic agenda.

Looking ahead

While the exact number of IPOs and their valuations will depend on market conditions, the Goldman Sachs outlook provides a concrete benchmark for the scale of opportunity that lies ahead. If the assumptions hold, India’s listed AI market could become one of the world’s most valuable technology segments within the next half‑decade.