India's AI Infrastructure Race: Government Selects Finalists for 10,000 GPU Procurement
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Govt Selects 10 Companies For Final GPUs Bidding Under IndiaAI Mission: Report
The bidding process began today (January 22) and the results are expected in a week The Centre has reportedly selected ten tech giants for the final bidding process to procure 10,000 graphic processing units (GPUs) under the IndiaAI Mission. Companies like Jio Platforms and Tata Communications have been shortlisted for this tender, Moneycontrol reported, citing sources close to the matter. Other companies bidding for the tender are CMS Computers India Pvt Ltd, Ctrls Datacenters Ltd, E2E Networks Limited, Locuz Enterprise Solutions Ltd, Orient Technologies Ltd, NxtGen Datacenter and Cloud Technologies Private Ltd, Vensysco Technologies Limited and Yotta Data Services Limited. The bidding process began today (January 22) and the results are expected in a week. Last week, the Ministry of Electronics and Information and Technology (MeitY) received offers for 20,000 GPUs to build AI computing capacity by these companies. The government opened the second round of bids last month. The IndiaAI Mission aims to create an AI ecosystem, offering supercomputing capabilities comprising over 10,000 GPUs to various stakeholders. The government has allocated INR 10,371 Cr for this project over the course of five years. Out of this amount, around INR 200 Cr has been reserved for the IndiaAI datasets platform, while INR 689 Cr has been kept for the IndiaAI application development initiative. Besides, the government is planning to allocate INR 4,563 Cr towards building a compute capacity of 10,000 or more GPUs and INR 1,971 Cr has been earmarked for setting up the new IndiaAI Innovation Centre. While the government is bullish on inviting bids from tech giants this time, the scenario differed in the previous bidding round. In August last year, it invited bids from selected empaneled agencies like data centres and cloud service providers to offer artificial intelligence services on cloud for academia, startups, researchers, and government bodies.
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AI GPU race enters final lap as MeitY opens financial bids
The technical evaluation of the bids was done on January 13, sources said, adding that New Delhi-based E2E Networks and Bengaluru-based NxtGen Datacenter and Cloud Technologies are among the shortlisted firms.Seven companies have been selected after the technical round in the bidding process for the government's artificial intelligence (AI) infrastructure initiative -- IndiaAI Mission -- for procurement of 10,000 graphics processing units, people aware of the development told ET. The financial bids will be opened by the ministry of electronics and IT (MeitY) on Wednesday afternoon, they said. The technical evaluation of the bids was done on January 13, they said, adding that New Delhi-based E2E Networks and Bengaluru-based NxtGen Datacenter and Cloud Technologies are among the shortlisted firms. E2E Networks and NxtGen Datacenter and Cloud Technologies confirmed that they have been called for the financial bid opening. After the opening of the bid, the L1 bidder will be announced, following which the other companies will be asked to offer compute-as-a-service at the price offered by the L1 bidder. "We are ensuring that AI infrastructure is sovereign to India, which requires us not just to ensure data is sovereign, but also ensure absolute control over technology and operations as well," AS Rajgopal, chief executive of NxtGen Datacenter and Cloud Technologies, told ET. He said, "Our in-house team has built technology to unify diverse GPU (graphics processing unit) platforms from NVIDIA, AMD (Advanced Micro Devices) and Intel and provide a single interface to our customers to leverage the technology options that suit their best interests." A combination of power-saving solutions and in-house development will deliver superior value, Rajgopal said. ET had reported on January 16 that Microsoft Azure has partnered with Mumbai-based Yotta Data Services for the bid while Amazon Web Services had partnered with CloudThat Technologies, CMS Computers, Hostin Services, i2k2 Networks, Locuz Enterprise Solutions, Orient Technologies and Vensysco Technologies. Indian companies have an advantage over hyperscalers, said one of the technically qualified bidders to ET. "Indian companies are already offering GPU-as-a-service at a price 40% to 50% lower than hyperscalers. Global hyperscalers cannot provide GPU-as-a-service in India at a price lower than their global price for just one bid," said one of the bidders. "Once they publish their price in India, their global clients will start asking for the same price. Hence, in a race to the bottom (in terms of pricing) Indian companies will win." As per competing companies, the other top contenders include Jio Platforms, Yotta, Tata Communications, and Ctrl S. These companies did not respond to ET's request for comment on whether they have qualified in the technical round of the bid. The government initiative aims to make available 10,000 GPUs to support startups, researchers, students and academicians. Around 44% or Rs 4,563.63 crore of the Rs 10,371.92 crore ($1.25 billion) approved by the cabinet for the 'IndiaAI Mission' in March last year is reserved for providing compute capacity of more than 10,000 GPUs over five years.
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The Indian government has shortlisted ten companies for the final bidding process to procure 10,000 GPUs under the IndiaAI Mission, aiming to boost the country's AI computing capacity.
India's AI Infrastructure Initiative Takes Shape
The Indian government has entered the final phase of its ambitious plan to procure 10,000 graphics processing units (GPUs) under the IndiaAI Mission. This initiative, aimed at creating a robust AI ecosystem in the country, has now shortlisted ten tech companies for the final bidding process 1.
Shortlisted Companies and Bidding Process
Among the companies vying for this significant tender are industry giants like Jio Platforms and Tata Communications, alongside other notable players such as CMS Computers India Pvt Ltd, Ctrls Datacenters Ltd, and Yotta Data Services Limited 1. The bidding process, which commenced on January 22, is expected to yield results within a week.
Technical Evaluation and Financial Bids
Prior to the final selection, a technical evaluation of the bids was conducted on January 13. Seven companies, including New Delhi-based E2E Networks and Bengaluru-based NxtGen Datacenter and Cloud Technologies, have been shortlisted after this technical round 2. The Ministry of Electronics and IT (MeitY) is set to open the financial bids, marking a crucial step in determining the successful bidders.
IndiaAI Mission: Scope and Budget
The IndiaAI Mission is a comprehensive initiative with a total allocation of INR 10,371 Cr (approximately $1.25 billion) over five years 1. This budget is distributed across various components:
- INR 4,563 Cr for building a compute capacity of 10,000 or more GPUs
- INR 1,971 Cr for establishing the new IndiaAI Innovation Centre
- INR 200 Cr for the IndiaAI datasets platform
- INR 689 Cr for the IndiaAI application development initiative
Strategic Importance and Competition
This procurement is not just about hardware acquisition; it represents India's strategic move to establish sovereign control over AI infrastructure. AS Rajgopal, CEO of NxtGen Datacenter and Cloud Technologies, emphasized the importance of ensuring "absolute control over technology and operations" 2.
The competition has intensified with both domestic and international players entering the fray. Microsoft Azure has partnered with Mumbai-based Yotta Data Services, while Amazon Web Services has formed alliances with several Indian companies 2.
Pricing and Competitive Edge
Interestingly, Indian companies may have a significant advantage in this bidding process. According to one of the technically qualified bidders, domestic firms are already offering GPU-as-a-service at prices 40% to 50% lower than global hyperscalers 2. This pricing strategy could be a game-changer in the final selection process.
Broader Impact and Future Outlook
The IndiaAI Mission aims to democratize access to AI infrastructure by making these GPUs available to startups, researchers, students, and academicians 2. This initiative is expected to significantly boost India's AI capabilities and foster innovation across various sectors.
As the bidding process enters its final stages, the outcome will not only determine the future of India's AI infrastructure but also set a precedent for similar initiatives globally. The success of this project could potentially position India as a major player in the global AI landscape.
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