India may strike a deal with Nvidia to source graphics processing units (GPUs) from the US manufacturer, and offer them to local startups, researchers, academic institutions and other users at a subsidised rate under its ₹10,000 crore Artificial Intelligence Mission, people in the know of the matter said.
The plan is at a «very early stage» and a decision is likely to be made after the elections, an official said.
Since Nvidia controls a dominant share of the GPU market, it is the natural choice for the Indian government, the official added.
Globally, setting up AI compute infrastructure has become a strategic issue for countries, which are spending billions of dollars to secure compute capacity for their companies as well as for national security needs. China and the US, for instance, have already started acquiring Nvidia's range of GPUs, including the powerful H100 chips.
India is considering two possible ways to provide AI compute infrastructure to its companies, as GPUs have become a very expensive and scarce resource.
While one is «rent-and-sublet», where the ministry of electronics and information technology will acquire the GPUs from Nvidia, the other is a marketplace model where the government will encourage companies themselves to strike a