Mega Networks plans to make AI servers in Maharashtra
Mega Networks is planning to set up a factory by the third quarter of the ongoing fiscal 2024-2025 to locally manufacture artificial intelligence servers, its chief executive said.
The factory will be in Maharashtra and the company plans to invest Rs 350-400 crore in FY25, Amrish Pipada told ET.
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Offering CollegeCourseWebsiteIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisitMITMIT Technology Leadership and InnovationVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisit“The initial investment for setting up the factory will be funded through internal accruals and debt of Rs 100-120 crore, with the remainder raised from long-term debt and private equity,” Pipada said.
Mega Networks is one of two Indian companies to be selected for the production-linked incentive (PLI) scheme 2.0 for IT hardware, under which the government provides an incentive of around 5% on net incremental sales of goods manufactured in India.
It has a technology partnership with US chipmaker Intel. The AI servers, launched in February, are optimised by Intel’s Habana Gaudi 1 and 2 series and 4th and 5th generation scalable processors, Pipada said. The modular servers can be used for generative AI, high-performance computing and in data centres.
“The funnel we have right now for AI servers is huge. If we are able to convert even 20%, our business will grow by 100-200%,” Pipada said.
Mega Networks has identified potential orders of
