Govt Spending on AI Makes India a Draw for Cloud Firms

With the government already procuring over 34,000 GPUs, companies expect strong growth

- Shouvik Das

India's $1.2 billion AI Mission is turning into a big opportunity for homegrown cloud service providers, due to an increase in graphic processing unit (GPU) demand and government-backed infrastructure procurement. Local firms like Reliance Jio Platforms, Tata Communications Ltd and Hiranandani Group's Yotta Data Services are witnessing significant growth, buoyed by the Union government's push to build a massive compute backbone for artificial intelligence (AI).

This is because these cloud service providers account for the bulk of the 34,333 GPUs procured by New Delhi, which in turn has given access to startups such as Sarvam, Gnani.ai and Soket AI Labs. GPUs are the fastest and most efficient way for companies to run calculations, allowing cutting-edge AI firms to analyze enormous amounts of data and train algorithms that power AI applications. Yotta, for instance, is currently supplying nearly 17,000 of 34,333 GPUs to New Delhi.