Lenovo to produce 50,000 AI servers, 2,400 GPUs annually in India

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Lenovo on September 17 announced the launch of a production facility in Puducherry which will manufacture around 50,000 enterprise Artificial Intelligence (AI) servers and 2,400 high-end Graphics Processing Units (GPU) units annually. The Beijing-headquartered firm also announced the establishment of a Research & Development (R&D) lab in Bengaluru.

“Today’s announcement marks the next phase in Lenovo's multi-million-dollar investment plan… further solidifying Lenovo’s commitment to India by creating thousands of economic opportunities in the high-technology skills domain,” the company said.

The production line for the AI servers and GPUs is situated in Lenovo’s Puducherry facility, which has been operational since 2005. The facility will cater to the booming AI infrastructure needs, with over 60 percent of the production expected to be exported across the Asia-Pacific region.

The R&D lab in Bengaluru is an addition to the global network of 18 existing ones. This facility is one of four global labs focused on Infrastructure Solutions, alongside centers in Morrisville, Beijing, and Taipei.

The company had already announced investing $1 billion globally between financial year 2023-25, focussed on building AI platforms, infrastructure, and edge computing. With this launch, the company wants to capitalise on the AI opportunity, which has been estimated at over $17 billion by BCG and Nasscom.

Lenovo, widely recognized for its personal computers and desktops, has been expanding its portfolio, with 47% of its revenue now coming from non-PC businesses.

The company has over 60 AI solutions, 80 AI platforms, over 400 employees with AI skills, and around 165 enterprise-grade AI solutions.

This lab will also be used in system design, development, and testing of next-generation server platforms, including hardware, firmware, and software development. The Bengaluru lab is also equipped with advanced tools for electrical, design/testing, power characterisation, thermal analysis, and compliance testing.

“With today’s announcement of AI server manufacturing in India, we complete Lenovo’s pocket-to-cloud technologies ‘Made in India’ for the world,” Shailendra Katyal, Managing Director, Lenovo India, said.

The company said all future mainstream server design, developments, and new technical initiatives will be conducted at this lab.