Blue Cloud shares in focus as firm inks $15 million deal to develop AI chips; key details

Shares of Blue Cloud Softech Solutions Ltd were in focus on Wednesday after the Hyderabad-based tech firm announced a major partnership with a US-based company.

In a filing to the stock exchanges, Blue Cloud Softech said it has signed a strategic Memorandum of Understanding (MoU) worth $15 million with Byte Eclipse, a US-headquartered IoT solutions provider.

The collaboration aims to design and develop advanced Edge AI chips for Industrial AIoT applications, with a specific focus on the Oil & Gas (O&G) sector. The first phase of the project, valued at $15 million, is expected to be completed within 18 months, the company said.

The partnership seeks to build chips that facilitate real-time, on-site data processing and decision-making for mission-critical operations such as Predictive Maintenance (PdM). The technology is expected to address key industry challenges, including harsh operating environments, remote field locations, and the growing demand for secure, autonomous systems.

According to the company, the new chips will be capable of processing large volumes of sensor data—such as vibration, temperature, and pressure—locally. This will enable “immediate anomaly detection and automated responses to prevent downtime and catastrophic failures.”

By processing data on-site, the solution is expected to reduce bandwidth consumption, lower transmission costs, and enhance security by keeping sensitive operational data local. The chips are also being engineered for autonomous performance in low-connectivity environments, including offshore platforms and pipeline networks.

The hardware will be ruggedized to withstand extreme temperatures and vibration, while being optimized for low power consumption, making it suitable for deployment in remote and challenging industrial settings.

Janaki Yarlagadda, Chairman of Blue Cloud Softech Solutions Ltd (BCSSL), described the agreement as a “transformative step” for the company.

“This partnership with Byte Eclipse marks a transformative step in BCSSL's journey to revolutionize industrial operations through cutting-edge Edge AI technology,” Yarlagadda stated in the release. “By designing and deploying innovative solutions tailored for the Oil & Gas sector, we aim to address the unique challenges of this critical industry while ensuring cost-efficiency, operational excellence, and sustainability,” Yarlagadda said.

Blue Cloud Softech said the move positions it to tap into India’s fast-growing Industrial AIoT market, which it expects to surpass $1 billion by 2027.

Founded in 1991, Blue Cloud Softech Solutions provides AI-driven enterprise solutions with a global footprint. Byte Eclipse, meanwhile, is a US-based IoT firm specialising in advanced hardware and AI-powered analytics.