India’s AI Strategy: Focus on Domestic GPU Development
India Prioritizes Domestic Companies for AI Development with Major GPU Initiative
The Government of India is making significant strides in the field of Artificial Intelligence (AI), implementing various strategies and decisions to establish a robust AI ecosystem. A crucial component of this initiative involves the preparation of Graphic Processing Units (GPUs) before setting up data centers, as GPUs play a vital role in AI development. However, several decisions are still pending, especially given the dominance of China and the United States in the AI market.
To advance its AI agenda, the Modi government is devising a future strategy focused on GPU development. This article provides insights into the government’s approach, helping you understand India’s strategy for AI.
One key decision is that only India-incorporated companies will be allowed to participate in the GPU tender process. This means foreign companies without ties to Indian firms cannot bid, ensuring that AI services, under the IndiaAI initiative, remain exclusively provided by Indian companies.
According to documents reviewed by ET, the Ministry of Electronics and Information Technology is planning to place a bid for 1,000 GPUs or equivalent AI compute capacity. The selected bidder will provide services for three years, with potential extensions based on government decisions.
An earlier ET report highlighted that the Indian government will only permit Indian companies to run and manage GPU operations. The India AI Mission, valued at Rs 10,372 crore, holds significant importance for participating companies, and the government is committed to ensuring the initiative’s success.
Documents reveal that the government requires a consortium of three bidders: one as a data center provider, one as a cloud service provider, and one as a system integrator. The primary service provider will lead the consortium, while the other two will act as secondary partners. This structure aims to create a comprehensive backend operation.
Nine members must meet specific criteria, including proving their legal entity status in India. The winning bidder will provide cloud services and establish a new data center in India. The companies must have operational AI services and 1,000 AI compute units ready in advance to commence operations within six months.
In summary, India’s AI strategy emphasizes domestic development, with stringent requirements for Indian companies to lead GPU and AI initiatives. This approach ensures the establishment of a strong, self-reliant AI ecosystem in India.
