India to tweak PLI 2.0 scheme to address GPU costs
The Indian government is looking to update its PLI 2.0 scheme for IT hardware because GPU prices have shot up, now making up almost 90% of server costs thanks to the AI boom.
Since high-performance GPUs aren't made in India yet, officials say it's time to rethink incentives so local manufacturing can keep up.
AI servers in huge demand, but rising GPU costs challenge
With AI servers in huge demand, rising GPU costs are challenging India's goal of building more tech at home and relying less on imports.
Companies like Altos Computing is stepping up with Made-in-India AI servers and higher local value addition, but the government wants to push even further, revising PLI 2.0 to help more firms invest, innovate, and better capture value in AI-server supply chains and increase domestic value addition, noting that high-performance GPUs are not currently manufactured in India.