India's AI Mission Advances: GPU Bidders Set to Receive AI Workloads

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On Wed, 2 Apr, 4:02 PM UTC

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India's AI Mission progresses as L1 bidders for GPU procurement prepare to receive AI workloads. The initiative aims to boost the country's AI infrastructure and foster innovation in the AI ecosystem.

India's AI Mission Takes Shape with GPU Procurement

India's ambitious AI Mission is gaining momentum as the government prepares to assign AI workloads to the lowest price (L1) bidders in its graphics processing unit (GPU) procurement tender. Companies such as Reliance Jio, E2E, NxtGen, Locuz, and CtrlS are set to receive these workloads by the second week of April, marking a significant step in the country's efforts to build a robust AI infrastructure 1.

Tender Details and Bidder Integration

The initial tender sought 10,000 GPUs, but ten technically qualified empanelled bidders have offered 14,517 GPUs at L1 rates. Some of these bidders have already integrated with the AI Compute portal launched on March 6, 2024. The integration process for all L1 bidders is expected to be completed by April 14 1.

Continuous Empanelment and Future Rounds

IndiaAI Mission has implemented a continuous empanelment process, allowing for quarterly renewals and fresh proposals. This approach aims to discover revised rates and encourage ongoing participation. The next round of applications is due by April 30, with evaluations set to begin in May 1.

GPU Models and Market Dynamics

Currently, none of the L1 bidders offer Nvidia's B200 GPUs, which are part of the advanced Blackwell architecture. However, these may be included in the next round. The market is showing particular interest in Nvidia H100 GPUs, which comprise 69% of the total GPUs offered 1.

IndiaAI Mission's Broader Initiatives

The IndiaAI Mission, approved with an allocation of INR 10,372 Cr over five years, encompasses various initiatives beyond GPU procurement:

  1. IndiaAI Compute Capacity: Aims to build a scalable AI computing infrastructure with over 10,000 GPUs 2.
  2. IndiaAI Innovation Centre (IAIC): Focused on retaining top research talent and developing indigenous large multimodal models 2.
  3. IndiaAI Datasets Platform: Improving accessibility and quality of public sector datasets 2.
  4. IndiaAI Application Development Initiative: Supporting AI solution development across various stages 1.
  5. IndiaAI FutureSkills: Expanding AI education and establishing AI Labs 2.

Progress in AI Application Development

The IndiaAI Application Development Initiative has received 900 applications for AI solution development support. Thirty AI solutions have been shortlisted across three maturity stages: idea, prototype, and existing solutions. Selected teams have received initial funding, with the potential for further support up to Rs 1 crore for successful deployments 1.

Industry Perspectives and Challenges

Industry players are optimistic about the initiative but acknowledge challenges. AS Rajgopal, CEO of NxtGen Datacenter & Cloud Technologies, confirmed their integration timeline and plans to offer H200 GPUs. Other companies, like Yotta Data Services, are positioning themselves for future opportunities as the demand for AI resources grows 1.

Some concerns have been raised regarding the focus on specific GPU models and potential pricing wars. Anuj Bairathi, CEO of Cyfuture India, suggested considering alternative technologies like ASIC-based solutions from Sambanova and Cerebras 1.

As India's AI Mission progresses, it promises to significantly boost the country's AI capabilities, fostering innovation and providing crucial infrastructure for researchers, startups, and government agencies in the rapidly evolving field of artificial intelligence.

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