India in Talks with Nvidia for AI Mission GPUs

By siliconindia  |  Wednesday, 17 April 2024, 12:45:56 PM IST

India in Talks with Nvidia for AI Mission GPUs
India is reportedly gearing up to strike a pivotal deal with the US-based chip giant Nvidia, aiming to bolster its Artificial Intelligence (AI) capabilities. With a potential investment of Rs 10,000 crore, the government plans to procure Nvidia's graphics processing units (GPUs) to fuel its AI Mission.
The initiative aims to democratize access to advanced GPU technology by offering subsidized rates to startups, academic institutions, researchers, and other stakeholders. This move is poised to catalyze innovation and propel India's AI sector forward.
Nvidia's prominence in the GPU market renders it a natural choice for India's strategic partnership. The potential collaboration holds promise for local players, granting them access to cutting-edge technology and fostering a conducive environment for AI development.
In addressing the challenge of scarce and costly GPUs, India is exploring two models. The first involves a 'rent-and-sublet' approach, wherein the Ministry of Electronics and Information Technology will procure GPUs from Nvidia. Alternatively, a marketplace model is being considered, encouraging companies to engage in renting or subletting agreements with the supplier. The government plans to incentivize productivity gains through these GPUs under production-linked incentive (PLI) schemes.
While companies worldwide purchase GPUs, it's improbable that any single country will be accorded priority access to these limited resources solely due to its federal structure. Consequently, extensive consultations are underway to devise optimal solutions.
GPUs, known for their rapid mathematical computations, are indispensable for AI applications, particularly due to their ability to handle large datasets. Nvidia's spokesperson highlighted the accessibility of its GPUs through the Nvidia Partner Network for both private and public buyers. However, specific details regarding the arrangement remain undisclosed.
The overarching objective of the AI Mission is to fortify India's innovation ecosystem and establish it as a global AI leader by augmenting computational capacity. By harnessing the power of GPUs, India seeks to unlock new frontiers in AI research and development, thereby driving economic growth and technological advancement.

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