India To Sign Deal With Nvidia For GPUs By CIOTechOutlook Team

India To Sign Deal With Nvidia For GPUs

CIOTechOutlook Team | Wednesday, 17 April 2024, 08:49 IST

The Indian government is in talks with the US-based software firm Nvidia to source graphics processing units (GPUs). The GPUs could be given to new companies, scholarly foundations and different users at financed rates under the Rs 10,000-crore artificial intelligence mission.

According to the report, the public authority is evaluating two potential arrangements. Under the main plan, the Ministry of Electronics and Information Technology can select a "for rent and sublet model," wherein it will rent the units from Nvidia and then rent them to users.

The subsequent way involves setting up a commercial center model under which organizations and foundations can lease GPUs straightforwardly from Nvidia. The public authority will later give motivators under existing plans, for example, production-linked incentives (PLI).

Nvidia is the world's greatest provider of graphic processing units (GPUs), crucial for power AI innovations. These units are considered expensive, with the most recent contribution of the organization valued at $40,000 per unit (around Rs 33.5 lakh). The government's arrangement can help industry players drive their developments in computer-based intelligence monetarily. The Bureau had supported the Rs 10,372 crore AI mission in march to convey 10,000 GPUs under the public-private association model.

In the midst of thriving interest in GPUs, the software firm has seen a gigantic leap in its valuations in the American capital business sectors. Its share price has increased 81% since the beginning of the year. As compared to the previous year, the worth of its stock has expanded by a whopping 223 percent. According to the organization rules, privately owned businesses and government offices can obtain GPUs.