Context:
India is set to procure 15,000 additional GPUs in the second round of bidding, which will increase the total number of high-performance graphics processing units (GPUs) to 33,000. The deadline for the second round of bidding is April 30.
Procurement and Supply Process
- The GPUs will be procured as part of the ₹10,372 crore IndiaAI Mission, approved by the Union Cabinet in March last year.
- In January 2025, the government procured 18,693 GPUs in the first round, surpassing the initial target of 10,000 GPUs.
- The procurement and supply process is managed by the Ministry of Electronics and Information Technology (MeitY), with an ongoing quarterly empanelment process for companies wishing to place bids.
Strategic Goals and US Regulations
- India is fast approaching the 50,000 GPU limit imposed by the United States on several countries. However, high-level discussions are underway to potentially remove this barrier, as part of broader bilateral trade talks between India and the US.
- The additional GPUs will be used by startups, academic institutions, researchers, and other stakeholders in the country.
Key Players in GPU Supply
- Several key players, including Jio Platforms, Tata Communications, and Yotta Data Services (owned by the Hiranandani Group), were empanelled in the first round of bidding.
- Other firms, such as CMS Computers India, Ctrls Datacentres, E2E Networks, and Locuz Enterprise Solutions, have also been shortlisted to supply GPUs.
Cost Efficiency
- The average rate for AI compute units based on the first round of bidding was discovered to be ₹115.85 per GPU hour for low-end units and ₹150 per GPU hour for high-end units.
- These rates are significantly lower than the global benchmark of $2.5 to $3 per GPU hour.
With this second round of procurement, India’s total number of high-performance GPUs will reach 33,000, boosting the nation’s AI research capabilities and supporting the IndiaAI Mission’s goals.
