India mulls Nvidia deal to procure coveted GPUs: report

India is contemplating a purchase agreement with AI chip giant Nvidia as part of the country’s US$1.1 million Artificial Intelligence Mission program, The Economic Times reported, citing sources familiar with the matter.

Should it push through, the program aims to offer the Nvidia graphics processing units (GPUs) at subsidized prices to startups, researchers, and academic institutions. Talks are at a “very early stage,” however, with the deal’s particulars likely finalized after upcoming elections.

The Indian government is taking a proactive stance to aid stakeholders in the country to get their hands on the coveted GPUs of the US manufacturer. A chip could cost as much as US$40,000, however, presenting a challenge to companies.

As such, the Indian government is reportedly considering two ways to deliver AI infrastructure to stakeholders, with the first being a “rent-and-sublet” program. Here, the government will buy the GPUs directly from Nvidia, after which startups and organizations can acquire the chips on a concession basis.

The alternative is a marketplace approach, where Indian businesses will be encouraged to make deals directly with Nvidia. After that, the government will provide incentives based on their “credible results.”

These reported talks come a month after the Indian government announced the AI mission, which aims to procure 10,000 GPUs for businesses in the country. In the meantime, some companies have already announced the procurement of Nvidia chips, including Yotta Data Services as well as conglomerates like Reliance Group and Tata Group.

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