How India’s Deal With Nvidia Helps In AI Mission?

In order to acquire graphics processing units (GPUs) for its artificial intelligence (AI) mission, India is in talks with US-based chipmaker NVIDIA.

Under a mission of INR 10,000 Cr, the government intends to provide these GPUs at a discounted rate to local businesses, researchers, and academic institutions.

India is investigating two possible approaches for its AI computing infrastructure: either a marketplace model, in which the government encourages businesses to rent or sublet GPUs.

Another Option is the ” rent-and-sublet” model, in which the Ministry of Electronics and Information Technology directly purchases GPUs from NVIDIA.

NVIDIA has not responded to inquiries about the development.In order to maximise disruption and accommodate the sensitivities of the Indian market, NVIDIA is collaborating with Indian enterprises to introduce GPUs to the nation.

GPUs, such as the Blackwell model from NVIDIA, can cost up to $40,000. Nations such as the US and China are spending billions of dollars on AI compute infrastructure, procuring a range of NVIDIA GPUs, including the potent H100 chips. Government subsidies can be helpful, as small firms and startups find it difficult to afford GPUs in one area.

There are currently not enough GPUs in India, and the exorbitant cost of computing power from other nations makes it difficult for AI startups and companies to contemplate employing it.