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India and Nvidia are in Discussions to Supply GPUs for the AI Mission

Asia Manufacturing Review Team | Wednesday, 17 April 2024

 Asia Manufacturing Review Team

According to reports, Nvidia, a US-based semiconductor giant, is seeking to get into a partnership with India in order to source graphics processing units (GPUs) for its Artificial Intelligence (AI) mission.

Under a mission valued at Rs 10,000 crore, the government intends to provide these GPUs at a discounted price to researchers, entrepreneurs, academic institutions, and other users, according to a story published in the Economic Times. Officials told ET that although the proposal is in its early stages, a decision would probably be made following the elections.

The person said, "Nvidia is seen as the Indian government's obvious choice due to its dominant share in the GPU market." If the idea is implemented, it might stimulate India's AI industry and provide local firms access to state-of-the-art technology.

Given the rising cost and scarcity of GPUs, India is investigating two solutions for its firms' AI computer infrastructure. According to the article, the Ministry of Electronics and Information Technology would purchase GPUs from Nvidia under the first option, which is the "rent-and-sublet" model.

The government will incentivize businesses to enter into sublease or rental agreements with suppliers under the terms of the second alternative, which is a marketplace model. Then, under production-linked incentive (PLI) programs, the government will offer rewards based on the additional productivity made possible by these GPUs. A different government official endorsed this strategy.

GPUs are bought by businesses and governments worldwide. Just because they have a federal system, it is doubtful that any nation will be granted priority access to these limited resources. According to the research, this means that in order to identify the best solutions, all stakeholders are being consulted.

A graphics processing unit is a processor that quickly computes mathematics to produce visuals and pictures. They are employed in both personal and business computers. GPUs are thought to be perfect for AI because the field requires big data sets to work with.

A representative for Nvidia stated that its GPUs are available to the general public and private customers via the Nvidia Partner Network. However, in response to ET's request for comment, the corporation did not offer any further information.

By increasing computational power, the AI Mission seeks to strengthen India's innovation environment and establish the country as a leader in artificial intelligence worldwide.