Tech5: Alibaba's Joe Tsai warns of data centre bubble, zinc alternative to Li-ion batteries, nanotech conference, and more

Forbes India's daily tech news bulletin with five headlines that caught our attention

By Harichandan Arakali Forbes India Staff

Published: Mar 25, 2025 10:36:30 AM IST

Updated: Mar 25, 2025 10:43:10 AM IST

Researchers at IIT Madras are developing zinc-air batteries as a safer, cost-effective, and sustainable alternative to lithium-ion batteries Image: P.Ravikumar for Forbes India

Alibaba’s Joe Tsai warns of potential AI data centre bubble

Alibaba Chairman Joe Tsai warned of a potential bubble in data centre construction, suggesting that the rapid pace of buildouts might exceed current demand for AI services, Bloomberg reported from the HSBC Global Investment Summit in Hong Kong earlier today. He criticised the indiscriminate rush by tech firms and investors to construct server bases without clear customer demand.

Critics of the ongoing AI goldrush have pointed out the lack of real-world AI applications and the unsustainable spending by companies like Microsoft, Amazon, and Alphabet, who have pledged billions for AI infrastructure. Tsai raised concerns over data centre projects being funded without securing uptake agreements and cautioned that these investments are being made ahead of actual demand, potentially leading to a bubble.

PsiQuantum raising $750 million at $6 billion valuation

PsiQuantum, a quantum computing startup, is raising at least $750 million, led by BlackRock, at a $6 billion valuation, Reuters reported exclusively. The company, using existing photonics technology, aims to mass-produce quantum chips at GlobalFoundries' New York factory. Quantum computing promises to solve complex problems, potentially revolutionising fields like materials science and pharmaceuticals.

Recently, major tech firms such as Google's Alphabet, Microsoft, Amazon, and Nvidia, have made advancements in quantum computing. PsiQuantum is collaborating with the Australian and US governments to build quantum computers in Brisbane and Chicago, aiming for a useful machine by 2029 or sooner. Quantum computers have long existed but are only now nearing practical applications.

Zepto in talks for $250 million secondary sale ahead of IPO

Indian quick commerce venture Zepto is in talks for current stockholders to sell as much as $250 million of their equity, Bloomberg reported on March24, citing people with knowledge of the plan.

The sale being ‘secondary’ means Zepto itself isn’t raising any money by selling its shares, but some existing investors and employees can encash their holdings in the company. Zepto is seeking a deal for the sale that would value it at $5 billion, which was the private value investors placed on the Bengaluru startup in its last funding round last year.

IIT-M researchers developing a zinc-air alternative to Li-ion

Researchers at IIT Madras are developing zinc-air batteries as a safer, cost-effective, and sustainable alternative to lithium-ion batteries, which are mostly imported, Economic Times reported. Zinc-air batteries offer numerous advantages, including safety, affordability, and higher energy density, making them suitable for India's increasing demand for energy storage systems.

The challenges include potential corrosion and sluggish kinetics, which require efficient catalysts for optimal performance. Companies like Salient Energy and Urban Electric Power are also working on zinc-based battery technologies for grid-scale applications. Professor Ranjit Bauri and research scholar Sai Vani Terlapu are leading the project at IIT-M.

MeitY to host nanotech roadshow and conference at IISc

The Nanotechnology Initiatives Division of MeitY, along with the top IITs and IISc Bengaluru, will host the Nano Electronics Roadshow and Conference on March 27, 2025. The event aims to foster innovation in nanoelectronics by connecting stakeholders from government, industry, academia, and startups.

Secretary S Krishnan emphasised the importance of achieving semiconductor self-sufficiency. The roadshow will showcase tech innovations, with 50 technology demonstrations, 25 deep-tech startups, and 25 venture capital firms participating. This initiative supports India's goal of self-reliance in electronics innovation and manufacturing under the India Semiconductor Mission.

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