StartupTalky

Tag: GPU Cluster

  • Government to Acquire 14,000 More GPUs, Announces IT Minister

    According to reports, Ashwini Vaishnaw, the minister of information technology, stated that the government is prepared to acquire 14,000 more graphics processing units (GPUs) as part of the IndiaAI Mission.

    Vaishnaw stated that the ministry’s goal in the initial round was to make 10,000 GPUs accessible to everyone. Therefore, the ministry obtained 18,000 GPUs in the first round alone, exceeding the 10,000 GPU target, and is now on the verge of receiving an additional 14,000 GPUs. That’s a significant amount, then.

    This will be on top of the 18,000 GPUs that the Centre has already purchased in recent months. The government invited bidders to submit GPUs for the shared computing facility in January of this year, including CMS Computers, Jio Platforms, Tata Communications, E2E Networks, and Yotta Data Services.

    Vaishnaw had previously stated that this computer centre will be the “most affordable” in the world, with an hourly rate of less than $1. It is important to remember that the government will pay 40% of the cost of the AI compute pricing.

    India Building an Ingenious AI Infrastructure  

    According to reports, Vaishnaw stated, “This is a big change, and AI is here for good,” when speaking at the CII Business Summit 2025.

    The minister emphasised the significance of an indigenous large language model (LLM) and stated that the nation will soon have AI models that are created and trained using Indian data, which includes societal norms, nuances, languages, and culture.

     The Centre is currently in the advanced phases of accepting three to four applications for the AI model being developed by SarvamAI, Vaishnaw added in reference to the initiative to establish an indigenous LLM.

    According to Vaishnaw, the IT Ministry has started working on developing models. Sarvam is working on one of the first ones, and there are currently three to four applications in the advanced stage of approval.

    As part of this process, the ministry is also utilising shared datasets to enable individuals to create their own applications that are beneficial to them, whether they are in the industrial, healthcare, or agricultural sectors.

    Highlighting India’s Semiconductor Chip Manufacturing Goals

    It is important to remember that SarvamAI was chosen from the initial group of candidates to develop the domestic AI model as part of the INR 10,371.92 Cr IndiaAI initiative. According to reports, he also mentioned that the government wants to “democratise” access to AI and have the nation ready for a swift technological revolution.

    Vaishnaw also reaffirmed that later this year, a local factory will produce India’s first semiconductor chip, which will have a size range of 28 to 90 nanometres (nm). Six fabrication units are currently being built, Vaishnaw continued. It is anticipated that the first Made in India chip would be released this year. “We initiated this journey in 2022, and the progress has been steady,” he stated.

    The minister explained that the government took a “focused approach” by focusing on a certain market sector that accounts for 60% of the world’s semiconductor demand, which is why it chose to target the 28 to 90 nm region. Chips in this category are utilised in power equipment, telecommunications, and automotive systems.

  • Government GPU Cluster Plan: Industry Cheers but Roots for Upskilling

    The Indian government’s plan of setting up graphic processing unit (GPU) clusters for startups in the artificial intelligence industry may be a step in the right direction but will reap benefits only when complemented with adequate development of skills and technical know-how across the country, according to a few industry experts that StartupTalky spoke with.

    On September 22, Union Minister Rajeev Chandrasekar said the government plans to set up a major GPU cluster under the India AI (Artificial Intelligence) program. There have also been media reports citing that the officials in the Ministry of Electronics and IT have been discussing a proposal to set up a cluster of 25,000 GPUs under a public-private partnership (PPP model) for AI start-ups.

    Unlike CPUs (Central Processing Unit) of a computer which performs simple computations; GPUs perform more complex and heavy computations. For instance: processing images, special effects, highly intensive applications such as video games, and artificial intelligence.

    AI Boom
    Skills – Need of the Hour
    Skill Development Initiative

    AI Boom

    At a time when the AI sector in India is expected to boom, this move by the government has sent a wave of initial optimism among startups and industry leaders. 

    “…this forward-thinking initiative could be a game-changer for India’s AI startups, including companies such as Josh in the content creation space,” said Sunder Venketraman, Head of Content, Creator and Monetization Ecosystem, Josh App, VerSe Innovation. “At Josh, we’ve been leveraging AI to empower creators across Bharat and this development gives the motivation and confidence in the future of content creation in the country,” Venkataraman said.

    The International Market Analysis Research and Consulting Group expects the AI market in India to witness a sharp growth of around 33% during 2023-2028 to touch $3.9 billion by 2028.

    As of now, the key manufacturers in the GPU market are NVIDIA and AMD, both headquartered in California. According to global trade data provider Volza, India is the top importer of GPUs in the world as of May 2023. As of May 31, India’s GPU imports stood at 31,022 shipments.

    There has been a sudden surge in demand for GPUs as AI companies look to integrate them into applications and programs. During his recent visit to India, Nvidia Corp. Chief Executive Officer Jensen Huang touted India to be “One of the largest AI markets in the world”.

    “India will have to walk on both legs, balancing manufacturing as well as the service sector, with the private sector driving the tailwinds of the Indian economy,” said CRISIL chief economist D.K. Joshi.

    Setting up GPU clusters will eventually translate into speedier processing and a shorter turnaround time for processing vast data.

    Skills – Need of the Hour

    However, as automation and the AI industry mushroom in the country, there is a dire need to develop skills to complement this change.

    Partner at Optimyze Finance LLP Manu Gupta told StartupTalky, “This is an important move as the world is coming to consume content in the video. The world is less about text today and moving about images and video. Tax incentives are a very powerful tool that the government has, to attract investment. But at the end of the day, this is a very knowledge-based industry. It is the skills of the people which will make somebody set up shop.”

    Recently, JLL in its report said it expects India’s data centre industry to add 693 MW of capacity by the end of 2026. This sharp rise is expected on the back of increasing digital growth, digital public infrastructure, 5G rollout, and new AI applications like machine learning coupled with data protection laws and state incentives.

    “To use the automation, I need to have the skill set. This learning process needs to be imparted to people. I need manpower for AI, which needs to be implemented right at school and college levels to develop the skill set. Secondly, general people need to be educated through ads or public awareness, training programs on how to simultaneously upgrade or update AI process and skill sets,” said the India operations Chief Financial Officer of a large France-based digital solutions company who requested anonymity.

    Skill Development Initiative

    Recognising this need, Prime Minister Narendra Modi during the recently concluded Group of 20 countries meeting in September called for a huge thrust on upskilling during his interaction with the labour ministry officials.

    “We all need to skill our workforce in the use of advanced technologies and processes. Skilling, re-skilling and upskilling are the mantras for the future workforce. In India, our Skill India Mission is a campaign to connect with this reality,” Modi said. 

    The government has also recently launched the Skill India Digital program which is an online platform to encourage skill development, education, employment, and entrepreneurship within the country.

    Earlier this year, the government also launched “AI for India 2.0”, an online free training program on AI in vernacular languages. This is a joint initiative by GUVI (Grab Your Vernacular Imprint–an IIT Madras and IIM Ahmedabad incubated education technology company) and Skill India.

    Looks like the beginning of a long road to upskilling and learning for a digital India. 

    Government Policies Lead Indian Startups to Thrive
    The government of India’s various initiatives and policies facilitate the growth of startups in India. Experts believe that government policies have made accessing capital easier.
    Sayantan MondalStartupTalky