AI GPU race enters final lap as MeitY opens financial bids

Seven companies have been selected after the technical round in the bidding process for the government’s artificial intelligence (AI) infrastructure initiative — IndiaAI Mission — for procurement of 10,000 graphics processing units, people aware of the development told ET.The financial bids will be opened by the ministry of electronics and IT (MeitY) on Wednesday afternoon, they said.

The technical evaluation of the bids was done on January 13, they said, adding that New Delhi-based E2E Networks and Bengaluru-based NxtGen Datacenter and Cloud Technologies are among the shortlisted firms.

E2E Networks and NxtGen Datacenter and Cloud Technologies confirmed that they have been called for the financial bid opening.

After the opening of the bid, the L1 bidder will be announced, following which the other companies will be asked to offer compute-as-a-service at the price offered by the L1 bidder.

“We are ensuring that AI infrastructure is sovereign to India, which requires us not just to ensure data is sovereign, but also ensure absolute control over technology and operations as well,” AS Rajgopal, chief executive of NxtGen Datacenter and Cloud Technologies, told ET.

He said, “Our in-house team has built technology to unify diverse GPU (graphics processing unit) platforms from NVIDIA, AMD (Advanced Micro Devices) and Intel and provide a single interface to our customers to leverage the technology options that suit their best interests.”A combination of power-saving solutions and in-house development will deliver superior value, Rajgopal said.

ET had reported on January 16 that Microsoft Azure has partnered with Mumbai-based Yotta Data Services for the bid while Amazon Web Services had partnered with CloudThat Technologies, CMS Computers, Hostin Services, i2k2 Networks, Locuz Enterprise Solutions, Orient Technologies and Vensysco Technologies.

Indian companies have an advantage over hyperscalers, said one of the technically qualified bidders to ET.

“Indian companies are already offering GPU-as-a-service at a price 40% to 50% lower than hyperscalers. Global hyperscalers cannot provide GPU-as-a-service in India at a price lower than their global price for just one bid,” said one of the bidders. “Once they publish their price in India, their global clients will start asking for the same price. Hence, in a race to the bottom (in terms of pricing) Indian companies will win.”

As per competing companies, the other top contenders include Jio Platforms, Yotta, Tata Communications, and Ctrl S. These companies did not respond to ET’s request for comment on whether they have qualified in the technical round of the bid.

The government initiative aims to make available 10,000 GPUs to support startups, researchers, students and academicians. Around 44% or Rs 4,563.63 crore of the Rs 10,371.92 crore ($1.25 billion) approved by the cabinet for the ‘IndiaAI Mission’ in March last year is reserved for providing compute capacity of more than 10,000 GPUs over five years.