In a strategic move to enhance its AI cloud services, Indian data center operator Yotta is set to invest $500 million in additional AI chips from its partner Nvidia. This substantial purchase brings Yotta’s total order book with the U.S. technology giant to an impressive $1 billion, signaling the company’s commitment to fortifying its position in the rapidly evolving AI landscape.
Sunil Gupta, CEO and co-founder of Yotta, revealed to Reuters on Thursday that the upcoming order would encompass nearly 16,000 units of Nvidia’s artificial intelligence chips, including the H100 and GH200 models. The comprehensive order is expected to be placed by March 2025, building on a prior order placed last year for about 16,000 H100 chips, slated for delivery by July 2023.
The significance of this deal extends beyond Yotta’s strategic interests, as AI collaborations in India are pivotal for Nvidia. The U.S. chipmaker faces challenges in certain chip exports to China and other nations due to restrictive U.S. regulations. To overcome these hurdles, Nvidia has actively sought partnerships in India, forging alliances with major conglomerates like Reliance Industries and Tata Group in September last year. These partnerships aim to advance cloud infrastructure, language models, and generative AI applications.
Yotta, a key partner for Nvidia in India and part of Indian billionaire Niranjan Hiranandani’s real estate group, operates three data center campuses strategically located in Mumbai, Gujarat, and near New Delhi. The growing demand for storage and processing capabilities has prompted major global players like Microsoft, Google, and Amazon, as well as Indian billionaires Mukesh Ambani and Gautam Adani, to intensify their cloud and data center investments in the country.
Nvidia holds a near-monopoly globally in providing computing systems that power services like ChatGPT, OpenAI’s renowned generative AI chatbot. Yotta anticipates that AI adoption in India will soar to $14 billion by 2030, highlighting the immense potential for growth and innovation in the country’s AI landscape.
Sunil Gupta emphasized the critical role of advanced infrastructure in realizing India’s AI ambitions, stating, “India’s AI ambition is just not possible unless this infra comes to India.” His comments were made on the sidelines of the Vibrant Gujarat Global Summit, a prominent event held in Prime Minister Narendra Modi’s home state. The summit serves as a crucial platform for attracting investments ahead of Modi’s upcoming re-election bid later this year.
Adding to these developments, Shankar Trivedi, a top executive at Nvidia, announced at the Gujarat event on Wednesday that Yotta is establishing an AI data center in Gujarat International Finance Tec-City, a new tech city. This center is set to go live by March, further solidifying Yotta’s position as a key player in India’s AI infrastructure landscape.
As Yotta strategically invests in cutting-edge AI chips from Nvidia, the collaboration is poised to catalyze innovation, drive economic growth, and elevate India’s standing in the global AI arena. The infusion of advanced technologies into the country’s digital infrastructure reflects a broader trend of India emerging as a key player in the global tech landscape.
