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GoI to Invest Rs 5,000 Crore in High-End NVIDIA AI GPUs for IndiaAI Mission

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GoI to Invest Rs 5,000 Crore in High-End NVIDIA AI GPUs for IndiaAI Mission
08 Jul 2024
5 min read

News Synopsis

The Government of India (GoI) is set to invest around ₹5,000 crore from the total ₹10,372 crore allocated for the India AI Mission into acquiring advanced Graphics Processing Units (GPUs).

A significant portion of this investment is expected to go to NVIDIA. At the Global IndiaAI Summit in New Delhi, a senior official from the Ministry of Electronics and Information Technology (MeitY) disclosed that the funding's objectives are to acquire cutting-edge GPUs and give Indian entrepreneurs discounted compute capacity.

Importance of GPUs in AI Development

GPUs are specialized chips that excel at accelerating Artificial intelligence (AI) and machine learning tasks by enabling faster data processing. Leading companies like NVIDIA, Intel, and AMD produce these chips, which are critical in building powerful and efficient AI systems.

By investing in these GPUs, the Indian government aims to enhance the computational capabilities available to startups and enterprises involved in AI research and development.

Government's Procurement Strategy

Abhishek Singh, the Additional Secretary of MeitY, explained that the government has earmarked nearly ₹5,000 crore to acquire over 10,000 GPUs. This initiative is part of a broader mission to improve India's AI infrastructure.

The government plans to issue tenders for these procurements but will not directly purchase and manage the GPUs. Instead, the government will encourage private sector investment and subsidize the cost of accessing these compute resources.

Support for Private Investment

The government wants to encourage private sector investments while lowering the cost of processing power. For individuals who require computing power—such as firms creating AI models, carrying out research, or working on intricate algorithms—this incentive will reduce prices.

By reducing the financial burden on innovators and researchers, the government hopes to stimulate significant advancements in the AI sector.

User-Centric Procurement Model

One key aspect of this approach is allowing end users to choose the GPUs that best meet their specific needs. Whether a startup requires the H100, Gaudi 2, or any other specific model, the choice will be theirs.

The government will not impose decisions on which GPUs to use, recognizing that startups and other enterprises are best positioned to determine the most suitable infrastructure for their AI projects. This user-centric procurement strategy guarantees adaptability and response to the diverse requirements of India's AI community.

Ensuring Proper Use of Subsidies

To prevent potential misuse of subsidized compute resources, such as the trading of vouchers, the government plans to implement checks and balances.

Singh emphasized how crucial it is to make sure the subsidies are put to good use and go to people who actually require computing power for the advancement of AI. This safety measure is essential to preserving the credibility and efficiency of the subsidy scheme.

Future Plans and Mechanisms

MeitY Secretary S Krishnan has stated that the government is looking into measures such as viability gap funding or a voucher-based scheme to accelerate and expand the availability of GPU resources throughout the nation.

The India AI Mission's significant GPU investment is a calculated step to improve the country's AI capabilities. Through lowering the cost and increasing the availability of strong computer resources, this program hopes to stimulate innovation, assist new businesses, and propel notable progress in the AI field.


The Government of India's emphasis on user choice and prevention of misuse ensures that the benefits of this investment reach the right hands. This initiative will ultimately contribute to India's growth as a global AI powerhouse, providing the necessary infrastructure to support the country's burgeoning AI industry.