The Centre is expected to shortlist seven companies that may qualify to provide graphics processing units (GPUs) under its ambitious ₹10,370 crore IndiaAI Mission. This initiative aims to expedite GPU procurement as the government seeks to enhance computing capacity in the country.

Last December, the Information Technology Ministry announced that it had received bids from 19 entities in response to a tender released in August. Among those likely to be shortlisted are Jio Platforms, Tata Communications, and the Mumbai-based start-up Yotta Data Services, as reported by The Indian Express.

The IT ministry has scheduled a meeting with the selected bidders on January 13, where representatives from the firms will be required to present detailed technical proposals and outline their operational plans. Additionally, these bidders must create a demo portal to showcase the user journey for accessing their GPUs. It is important to note that while these bidders are being considered, they have not yet been awarded contracts for GPU supply; they are being asked to provide further technical information regarding their proposals.

According to a senior industry executive, “The government seems to favor entities that already possess GPU capacity or have a clear roadmap to acquire the devices within a specified timeframe. Resellers have not been prioritized.”

Queries sent to the IT ministry, Jio Platforms, Tata Communications, and Yotta Data Services have not received any responses.

Computing power from GPUs is a critical component in building and training AI systems. Currently, this technology is expensive, and Nvidia holds a virtual monopoly on the GPUs used in AI-driven data centers.

The government’s ₹10,370 crore AI Mission aims to procure computing capacity in the country and offer it at concessional rates to start-ups and researchers. Last August, a tender was issued to procure at least 10,000 GPUs as part of the IndiaAI Mission.

The implementation of this computing infrastructure will follow a public-private partnership model, with up to 50% viability gap funding. If computing prices decrease, the private entity will be required to increase compute capacity within the same budget to meet rising demand. Of the total budget, ₹4,564 crore has been allocated for building computing infrastructure.

Meanwhile, the IT ministry is in discussions with the ministries of Power, New and Renewable Energy, and other related agencies to develop a roadmap to ensure that the increasing number of data centers in India—driven by the global AI boom—are provided with sufficient power supply.