KEO AI PC Puts Keonics Back in the Spotlight

When Karnataka IT/BT minister Priyank Kharge unveiled the KEO AI PC ahead of the Bengaluru Tech Summit this week, he placed Keonics firmly at the centre of the announcement. 

“It just took a year for us to launch KEO,” he said. “And after a very long time, Keonics under the chairmanship of Sharath Bachegowda is doing what it has to do.”

Reflecting on Keonics’ trajectory, Kharge noted that in the 1980s and 1990s, the agency manufactured microwaves and TVs but later lost direction, even “supplying drivers and gardeners to the Bruhat Bengaluru Mahanagara Palike (BBMP).” He added, “We missed the previous electronic revolution. Now, we don’t want to miss that,” positioning the KEO AI PC as a catalyst for advancing electronics and AI from Karnataka.

From TVs to KEO

The launch marks a return to visibility for Keonics. The low-cost, open-source, AI-ready PC is designed to widen access, signalling the PSU’s attempt to reassert relevance. This comes even as Keonics addresses governance concerns flagged in recent audits, while the state seeks to reposition it as a platform for AI and digital public infrastructure.

Founded in 1976 to promote Karnataka’s electronics industry, Keonics initially organised ELCOMEX exhibitions and acquired 332 acres on Hosur Road, laying the foundation for Electronics City. By the mid-1980s, the area attracted global tech companies including HP, Siemens, Wipro, Infosys, ITI, Motorola, Tata, and NTTF among others. Keonics also established a TV manufacturing unit in Peenya Industrial Area and hosted the first Software Technology Parks of India facility.

Through the late 1980s and 1990s, the PSU expanded into communications hardware, joint ventures, marketing of telecom equipment, and IT education, launching government-sponsored training programmes, software parks in Mysuru, and Yuva.com centres under state skills initiatives. Between 2001 and 2006, Keonics scaled its network to nearly 300 centres, introduced e-tendering nationally, and built in-house IT capabilities.

From 2007 to 2014, it extended its reach beyond Karnataka, implementing e-governance in Arunachal Pradesh, managing e-procurement for Bihar, and assisting in India’s first IT Investment Region (ITIR). It also supported IT parks across multiple Karnataka cities.

However, a wide operational footprint exposed governance challenges. Between 2018–19 and 2022–23, the Comptroller and Auditor General flagged  procurement and pricing irregularities, with alleged deviations totaling around ₹500 crore, including price variations in tribal welfare computer labs.

The KEO AI PC launch signals that the state aims to reposition Keonics not just as a legacy PSU but as a driver of open-source computing, AI accessibility, and locally developed digital infrastructure.

A Catalyst in the AI Era

The Greater Bengaluru IT Companies and Industries Association (GBITCIA) has welcomed the renewed vision and action of Keonics. General secretary Krishna Kumar Gowda told AIM that after a challenging period marked by inefficiencies and management concerns, Keonics has taken significant strides to align itself with the state’s goal of leading in the next wave of technological innovation.

K S Viswanathan, former NASSCOM vice-president and long-time observer of the sector, said Keonics’ early contributions were foundational to the rise of the IT sector in Karnataka.

“Keonics created the entire concept of Electronics City. Who in 1995–96 would have imagined a separate city for electronics? That became the springboard for Bengaluru to grow as a Silicon Valley–like destination,” he noted.

However, Viswanathan cautioned that the successes of the 1990s and early 2000s cannot be directly applied to the demands of 2025. “Things have changed. Keonics has to adapt to the times. They cannot remain a pure government organisation,” he said.

He suggested that Keonics could again be a catalytic force if it pivoted to high-value infrastructure for the AI era. “If they can create a world-class AI Park, just like they seeded the incubation facility in Electronics City, it would be a game changer for Karnataka.”

Viswanathan echoed Kharge’s assessment that Karnataka had historically “focused more on IT and less on electronics manufacturing”. 

“If the focus had been on electronics manufacturing as well, Keonics could have become a national champion. Now, by combining electronics manufacturing with IT, Karnataka still has the potential to lead,” he said.

The post KEO AI PC Puts Keonics Back in the Spotlight appeared first on Analytics India Magazine.

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