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India’s largest Nvidia cluster operator eyes $4b valuation
Yotta Data Services Pvt., India’s largest cluster of Nvidia AI processors, is seeking to raise new funding at about a US$4 billion valuation as it prepares to file a draft prospectus for an IPO.
The company is targeting roughly US$500 million to US$600 million in a pre-IPO round, and plans to seek a similar amount in the public offering after filing listing documents in the coming weeks.
People familiar with the matter said Yotta is in talks with banks, including the local arms of Nomura Holdings Inc. and Goldman Sachs Group Inc., as well as ICICI Securities Ltd. and Kotak Securities Ltd.
The firm has also received in-principle approval while awaiting final clearance from the Securities and Exchange Board of India.
Potential pre-IPO backers reportedly include sovereign wealth funds, including Mubadala Investment Co., and several Indian billionaires’ family offices.
Reuters earlier reported Yotta had targeted US$1.2 billion in pre-IPO fundraising, citing CEO Sunil Gupta.
Yotta currently operates about 10,000 Nvidia H100 chips, plans to have thousands of Nvidia B200 units by May, and expects more than 20,000 Nvidia B300 processors to go live by August as part of a US$2 billion investment announced last month.
The company previously explored a US SPAC listing but shifted to a domestic float and positions itself as a provider of sovereign computing services to government and private customers.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
Yotta’s valuation leans on government approval and big-name partners
- A US$4.0 billion valuation sits far above the company’s 2023 revenue of US$90.5 million, which suggests investors are paying for expected growth rather than current scale 1.
- “Sovereign computing services” is more than branding. Yotta runs a cloud platform officially empanelled by India’s Ministry of Electronics and Information Technology (MeitY), which makes it a common choice for government work and regulated industries 2.
- Nvidia chip access comes from a close partnership. Yotta says it is the only NVIDIA Exemplar Cloud Partner in the Asia-Pacific region, a program it says offers early access to new technologies 2.
- Microsoft adds another layer. Yotta says Microsoft Azure AI integration with its Shakti Cloud supports enterprise and government AI work on in-country GPU infrastructure 2.
India’s data rules and speed gains push demand for local compute
- Yotta’s public offering fits a broader shift where national data policy helps create high-value domestic infrastructure companies.
- India’s Digital Personal Data Protection Act and localisation mandates are lifting demand for domestic compute. Yotta CEO Sunil Gupta links this to interest from global players such as OpenAI 3.
- Local processing also cuts lag. Yotta puts data processing latency for Indian users at 200–350 milliseconds on U.S. cloud regions versus 20–50 milliseconds on local infrastructure 3.
- Yotta’s IPO may offer a model for other capital-heavy infrastructure firms in India that want public funding for sovereign AI build-out 3.
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