Indian Government Allocates $670M for GPUs to Support AI Startups

Indian Government Allocates $670M for GPUs to Support AI Startups

The Indian government is taking a significant step towards promoting and supporting artificial intelligence (AI) startups in the country. The government has allocated Rs 5,000 crore (approximately $670 million) from the India AI Mission fund to procure Graphics Processing Units (GPUs) and provide subsidised compute capacity to Indian startups. This move aims to enhance the development of compute infrastructure needed for AI and machine learning tasks.

Abhishek Singh, the additional secretary of the Ministry of Electronics and Information Technology (MeitY), revealed the government’s plans during the Global IndiaAI Summit held in New Delhi. Singh explained that the procurement of the GPUs would not involve direct purchase of the chips by the government. Instead, the government intends to leverage private players' investments in this area, with the government subsidizing the cost of access to the compute.

Singh emphasized the importance of letting users, particularly startups and enterprises, determine the GPUs that best suit their needs. The procurement model is designed to allow users to choose their preferred GPUs, whether it is Nvidia’s H100 or Gaudi 2, or even traditional CPUs for AI solutions. Singh highlighted that end-users are the best judges of the infrastructure needed to train their models and build AI solutions.

The government’s approach seeks to strike a balance between providing support and preventing misuse of subsidized compute capacity. Singh stated that while the government would not dictate users' choices, some checks and balances would be in place to ensure that the compute resources are not misused or traded as vouchers.

The Indian government’s decision to invest in GPUs for AI startups demonstrates its commitment to foster growth and innovation in the AI sector. By providing subsidised compute capacity, the government aims to alleviate the financial burden on startups and enable them to access the necessary resources at a lower cost.

This move is aligned with the government’s broader vision of advancing AI adoption and technological advancements in the country. India has been working towards establishing itself as a global AI hub, and initiatives like the India AI Mission and the subsidised GPUs program are crucial steps in that direction.

The allocation of Rs 5,000 crore towards GPUs for AI startups is a significant boost for the Indian AI ecosystem. It will not only accelerate the development of AI models and solutions but also encourage more startups to enter the AI space. With access to subsidised compute capacity, startups can focus on innovation and scaling their operations, ultimately driving economic growth and technological progress in India.

As the Indian AI sector continues to evolve, government support and investments like these will play a pivotal role in propelling its growth. With the right infrastructure and resources in place, Indian AI startups are poised to make a mark on the global stage and contribute to the broader AI revolution.

In the words of Abhishek Singh, “The startups and those who are building the solutions are the best judges regarding how they want to train their models and which infrastructure to use.” The Indian government’s initiative empowers these startups to shape their AI journey while enjoying the benefits of subsidised compute capacity. It is a step toward fostering a thriving AI ecosystem that will drive innovation and economic progress in India.


Written By

Jiri Bílek

In the vast realm of AI and U.N. directives, Jiri crafts tales that bridge tech divides. With every word, he champions a world where machines serve all, harmoniously.