Govt Begins Procurement of 10,000 GPUs Under IndiaAI Mission

January 23, 2025

Recently, the Government of India initiated the bidding process for the procurement of 10,000 graphics processing units (GPUs) under the IndiaAI Mission. This mission, approved by the Cabinet in March 2024, has a budget of ₹10,372 crore over five years, aimed at boosting artificial intelligence development in the country. The GPU procurement is a critical step to enhance computing capabilities and support various stakeholders in creating an AI ecosystem.

GPU Procurement

The procurement process involves ten selected companies, including Jio Platforms and Tata Communications, competing for the supply of GPUs. The bidding commenced on January 22, 2025, with results expected within a week. A portion of the mission’s budget, about 44% (₹4,563.36 crore), is allocated for GPU procurement.

Importance of GPUs

GPUs are essential for training and running AI models efficiently. They can process vast amounts of data simultaneously, making them much faster than traditional CPUs. This speed is crucial for developing advanced AI applications across various sectors.

Challenges in GPU Procurement

Despite the ambitious goals, challenges exist. High costs of GPUs, limited availability, and a shortage of skilled AI professionals may hinder progress. Moreover, the existing computing infrastructure in India is minimal, comprising less than 2% of global capacity.

Modifications to Bidding Requirements

To encourage participation from smaller firms, the government revised the bidding requirements. The average turnover for primary bidders was reduced from ₹100 crore to ₹50 crore, while non-primary members saw their requirements halved to ₹25 crore.

Current Status of AI in India

AI adoption is on the rise across sectors in India. Initiatives like Digital India and the National AI Strategy are driving this trend. Major cities, such as Bengaluru and Hyderabad, are emerging as AI hubs, supported by research institutions and a growing number of startups.

What is IndiaAI Mission?

The IndiaAI Mission aims to build a robust AI computing infrastructure.
Its objectives include enhancing data quality, encouraging industry collaboration, and promoting indigenous AI technologies.
The mission will support sectors like healthcare, agriculture, and governance by developing foundational AI models.

Future Prospects and Initiatives

The IndiaAI Mission is set to create a high-end AI computing ecosystem. Plans include establishing the IndiaAI Innovation Centre and datasets platform, promoting AI education, and providing financing for startups. The government aims to ensure ethical AI practices and address environmental concerns associated with data centres.

Anticipated Challenges Ahead

The mission faces potential obstacles, including limited GPU infrastructure, high implementation costs, and ethical issues related to AI. Additionally, geopolitical factors and regulatory challenges may impede access to essential technologies.

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