Government Advances IndiaAI Mission with INR 10,000 Crore GPU Procurement Tender An amount of INR 5,000 crore has been allocated specifically for creating compute infrastructure, a vital component of the IndiaAI mission.
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The Indian government has made significant strides in advancing its ambitious IndiaAI mission by inviting bids for the procurement of 10,000 graphics processing units (GPUs) under a INR 10,000 crore project. Key players like Jio Platforms, Tata Communications, Yotta Data Services, and E2E Networks are among the 19 companies vying for this transformative initiative, as per a government release on Tuesday.
An amount of INR 5,000 crore has been allocated specifically for creating compute infrastructure, a vital component of the IndiaAI mission. This infrastructure will support academia, startups, and researchers in running large language models (LLMs) and developing AI-driven solutions.
To empower startups, the government has introduced a viability gap funding model, which will subsidize up to 50 per cent of compute costs for early-stage companies utilizing the GPUs. This initiative aims to remove financial barriers for startups innovating in artificial intelligence and deep tech.
As per the tender document, successful bidders must deploy a minimum installed capacity of 1,000 AI compute units within six months of signing the agreement. This accelerated timeline underlines the urgency of building robust AI infrastructure to position India as a global leader in AI innovation.
Bidding process
Other bidders for the tender include Ctrls Datacenters, CloudThat Technologies, CMS Computers, Cyfuture India, Sify Digital, Unicloud, and NxtGen Datacenter and Cloud Technologies, among others. The technical evaluation committee will now assess proposals based on the eligibility and technical specifications outlined in the tender. Eligible companies will present their solutions during a technical evaluation stage before final selections are made.
The empanelment period for the selected vendors will last 36 months, with an option to extend for an additional 12 months under mutually agreed terms. Through this initiative, the IndiaAI mission aims to establish GPU-based compute infrastructure via a public-private partnership (PPP) model, foster innovation centers, and develop sovereign AI capabilities.
Boost for AI ecosystem
By facilitating affordable access to advanced compute infrastructure, the IndiaAI mission is expected to accelerate AI research and innovation in the country. This move will enable startups, researchers, and academia to develop cutting-edge AI solutions, ultimately strengthening India's position in the global AI landscape.
This development marks a crucial step in realizing India's vision of becoming a hub for AI innovation, leveraging public-private partnerships to build a sustainable and inclusive AI ecosystem.
