India May Sign Deal With Nvidia For GPUs: Report

Indian government is reportedly in talks with US-based Nvidia for GPUs to boost its AI ecosystem
India May Sign Deal With Nvidia For GPUs: Report

The Indian government is reportedly in talks with the US-based tech giant Nvidia to source graphics processing units (GPUs). The GPUs could be provided to startups, academic institutions and other users at subsidised rates under the Rs 10,000-crore artificial intelligence mission.

The Economic Times reported citing official sources that the plan is in early stages and the decision on the deal is likely to come only after the conclusion of Lok Sabha polls in June.

The government is assessing two possible routes for the deal, as per the report. Under the first arrangement, the ministry of electronics and information technology can opt "for rent and sublet model" wherein it will take the units on lease from Nvidia and then sublet them to users.

The second route entails setting up of a marketplace model under which companies and institutions can rent GPUs directly from Nvidia. The government will subsequently provide incentives under existing schemes such as production linked incentives (PLI).

Nvidia is the world's biggest supplier of graphic processing units (GPUs) which are essential to power AI innovations. These units are considered very costly, with the latest offering of the company reportedly priced at $40,000 per unit (around Rs 33.5 lakh).

Government's plan can help industry players in powering their innovations in AI economically. The Cabinet had approved the Rs 10,372 crore AI mission in March to deploy 10,000 GPUs under the public-private partnership model.

Amidst a booming demand for GPUs, Nvidia has seen a massive jump in its valuations in the American capital markets. Its share price has surged 81 per cent since the start of the year. Compared to last year, the value of its stock has increased by a whooping 223 per cent.

As per the company guidelines, both private companies and government agencies can procure GPUs.

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