₹10,371 Cr IndiaAI GPU Scheme Draws Bids from Google, Infosys, TCS

Artificial Intelligence (AI) is quickly reshaping industries across the globe, and India is eager to become a major force in this transformation. Understanding the importance of high-end computing infrastructure for AI advancement, the Indian government introduced the IndiaAI Mission. In March 2024, the Union Cabinet approved the initiative with a significant allocation of ₹10,371 crore to be invested over five years.

This ambitious initiative aims to provide affordable access to Graphics Processing Units (GPUs), essential for AI computations, by subsidizing 40% of their cost. This subsidy reduces the price to under one dollar per hour of GPU usage, making it the most cost-effective rate globally.

Source: economic times

Nvidia Bounces Back with Strong Results

Talking about the global scenario, international tech giant Nvidia is also riding the AI tech boom as the company reported solid performance. Nvidia’s revenue jumped 78% to $39.33 billion in the three months ending in January 2025. Its profit also rose by 80%, reaching $22.09 billion. These numbers show that the demand for Nvidia’s A.I. chips remains strong.

Nvidia’s quarterly results surpassed Wall Street expectations, beating forecasts of $38.32 billion in sales and $21.08 billion in profit. For the current quarter, the company expects revenue to grow by 65% year-on-year to $43 billion. While this marks a slower pace compared to the previous quarter, it still exceeds analyst estimates by around $1 billion.

Last month, Nvidia lost $600 billion in market value in just one day. This drop happened because some investors started worrying about the future of the company. After the Chinese start-up  DeepSeek claimed it developed its artificial intelligence (A.I.) systems using significantly fewer A.I. chips and at a much lower cost than other companies, it led to question Nvidia’s strong position in the A.I. chip industry.

Source: nytimes.com

Major Tech Players Show Interest

Coming back to India’s AI future, the Government’s initiative to offer affordable GPU access has garnered attention from leading technology and telecom companies. Industry giants such as Google, Airtel, Tata Consultancy Services (TCS), and Infosys participated in a pre-bid meeting on March 26 for the second round of applications under the IndiaAI Mission’s GPU initiative. 

Other notable participants included AMD, BSNL, Dell, Deloitte, Hewlett-Packard Enterprise (HPE), IBM, L&T, NetApp, Netweb, NTT, Oracle, Palo Alto Networks, Salesforce, ST Telemedia, Ola Krutrim, and Neysa. These companies are evaluating potential involvement in the project, though some may choose not to apply formally. The deadline for bid submissions in this round is April 30.

Source: economic times

Progress from the First Round

In the first round, which concluded on January 28 2025, the government empaneled ten companies, including Reliance Jio, Yotta, E2E, and NxtGen. These firms collectively offered 14,517 GPUs, surpassing the initial target of 10,000 GPUs. Other technically qualified companies from this round include CMS, CtrlS, Locuz, Orient, Tata Communications, and Vensysco.

Winners of the second round of the tender will need to either match or beat the lowest rates set in the first round. In that initial round, the average cost per AI compute unit stood at ₹115.85 per hour, while the rate for a high-precision unit was ₹150 per hour.

Source: economic times

An Overview of the IndiaAI Mission

In March 2024, the Union Cabinet approved the IndiaAI Mission with a substantial budget of ₹10,371 crore allocated over five years. The primary goal of this mission is to establish a scalable AI ecosystem through public-private partnerships. A significant component involves creating a supercomputing infrastructure equipped with over 10,000 Graphics Processing Units (GPUs). These GPUs are essential for handling complex AI and machine learning tasks, offering faster data processing capabilities compared to traditional CPUs.

Expanding AI Horizons

Experts view the involvement of established IT companies in the IndiaAI Mission as a shift from a “Make in India for India” approach to a broader “Make in India for the World” vision. 

They observed that the mission is now attracting a wider range of participants beyond just startups and data center providers, highlighting the growing involvement of IT/ITeS, BPO, and KPO giants that cater to global markets from India.

Government’s Commitment to AI

By subsidizing GPU costs, the government aims to provide affordable computing access to startups and researchers. Additionally, the mission supports firms building foundation models within the country. 

Union Minister for Electronics and IT, Ashwini Vaishnaw, highlighted that India is working across five layers of AI: the chip layer, foundational model layer, application layer, data center and hyperscaler layer, and the talent layer. The goal is to develop three foundational models by the end of this year and have an indigenous GPU ready in the next three to four years.

Source: economic times

Conclusion

India’s proactive steps in subsidizing GPU costs and fostering collaborations with major tech companies underscore its commitment to becoming a global AI hub. By building robust AI infrastructure and encouraging participation from both startups and established firms, the IndiaAI Mission is poised to drive significant advancements in the AI landscape, benefiting not only India but also contributing to the global AI community.

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