India in talks with Nvidia to source GPUs for AI Mission: Report

GPUs — graphics processing units — are special chips that were originally designed to render graphics in video games, and have since become fundamental to the artificial intelligence arms race. (Representational photo by The Masked Guy via Pexels)

India is reportedly looking to strike a deal with US-based chip giant Nvidia for sourcing graphics processing units (GPUs) for its Artificial Intelligence (AI) Mission.

The government plans to offer these GPUs to startups, academic institutions, researchers and other users at a subsidised rate under the mission worth Rs 10,000 crore, an Economic Times report has said. Though the plan is at an initial stage, the decision will likely be made after the elections, officials told ET.

Nvidia, with its dominant share in the GPU market, is considered to be the natural choice for the Indian government, the official added. If the plan goes through, it could boost the AI sector in India, providing local players with access to cutting-edge technology.

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India is exploring two options to provide AI computing infrastructure to its companies, as GPUs have become expensive and scarce. The first option is the "rent-and-sublet" model, where the Ministry of Electronics and Information Technology will acquire GPUs from Nvidia, the report said.

The second option is a marketplace model where the government will encourage companies to strike a renting or subletting deal with the supplier. The government will then provide incentives based on the incremental productivity achieved through these GPUs, under production-linked incentive (PLI) schemes. Another government official confirmed this plan.

Moneycontrol could not verify the report independently.

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Companies and government agencies all over the world purchase GPUs. However, it is unlikely that any country will be given priority access to these scarce resources just because they are a federal structure. Therefore, all stakeholders are being consulted to find the best possible solutions, the report said.

A graphics processing unit is a chip that renders graphics and images by performing mathematical calculations at high speed. They are used for both professional and personal computing. As AI requires large data sets to work on, GPUs are considered ideal for them.

According to a Nvidia spokesperson, both private and public buyers can get their hands on its GPUs through the Nvidia Partner Network. However, the company did not provide any further details in response to ET's request for comment.

The AI Mission is aimed at boosting India’s innovation ecosystem and position it as a global leader in artificial intelligence by building computational capacity.