AI hardware is a broad term used in the context of artificial intelligence that encompases chips, boards and systems for accelerating and building a variety of artificial intelligent applications. This talk provides insights into what is required to take leadership in this field, and how efforts in semiconductors can shape the future of this field in India. In particular, the talk will discuss the emerging fields of in-memory processing and brain inspired systems, that are important for developing a variety of energy efficient computing systems. The insights into the startup ecosystem in this field as well as research in this area will be highlighted.