India negotiates with NVIDIA for GPUs to advance AI Mission
What's the story
The Indian government is reportedly negotiating a deal with chip-manufacturing giant NVIDIA. The aim of this potential partnership is to acquire NVIDIA's high-end H100 and Blackwell AI chips for the country's ambitious 'AI Mission.' As part of the ₹10,000 crore mission, the government plans to offer these advanced GPUs to start-ups, academic institutions, researchers and other users at subsidized rate.
AI expansion
Strengthening AI infrastructure in India
This initiative is part of a broader strategy to enhance India's AI infrastructure by making cutting-edge technology accessible to domestic startups, researchers, and educational institutions. The final decision on this potential collaboration is expected after the 2024 general elections. NVIDIA's significant presence in the global GPU market makes it a suitable partner for India's needs in AI computing infrastructure.
Distribution strategies
Proposed models for AI chip procurement and distribution
India is considering two methods for acquiring and distributing these AI compute-capable NPUs and GPUs: a "rent-and-sublet" model and a marketplace model. The former would see the government offering GPUs at discounted rates to startups and researchers. Conversely, the marketplace model would allow companies to negotiate rental or subletting agreements directly with NVIDIA.
GPU hurdles
Addressing GPU accessibility challenges for startups
The high cost and limited availability of GPUs pose significant challenges for companies, particularly startups. For instance, India's supercomputer 'AIRAWAT,' equipped with 640 GPUs and ranked as the 75th fastest supercomputer worldwide, is still outpaced by the world's fastest supercomputers that house over 30,000 GPUs. This highlights the need for more accessible GPU resources in India.
Market growth
NVIDIA's market value soars amid rising GPU demand
The increasing demand for GPUs has driven NVIDIA's market value to $2.16 trillion, making it the third most valuable company globally. Major Indian corporations such as the Reliance Group, Tata Group, and Yotta Infrastructure have already signed deals with NVIDIA to secure GPUs for local use. This trend underscores the growing recognition of AI computing infrastructure's importance in India.