In the revised 2026-27 budget, Tamil Nadu Finance Minister N. Marie Wilson said the state will establish Arivagam as India's first dedicated AI and innovation city, The Hindu reported. Plans sketch an AI university, skill centre, semiconductor hardware testing lab, multi-domain incubators, and housing, with Rs 5 crore for a feasibility study. The same speech floated Guidance 3.0, an AI-powered single-window investor service. Why it matters: a major state is packaging AI as industrial policy. Caveat: the capital line funds a study, so delivery and site selection remain unproven.