Yotta Anticipates $1 Billion in Nvidia AI Chip Purchases
Yotta $1 Billion in Nvidia AI Chip Purchases, an Indian data center operator based in Gandhinagar, has revealed its intention to acquire an additional $500 million worth of AI chips from its partner Nvidia. As the chief executive told Reuters in a statement, the move would protect the U.S. Yotta’s total order book with the company will increase to $1 billion, which is a strategic initiative to enhance its AI cloud services.
Last month, Yotta announced its intention to place orders for Nvidia (NVDA.O) chips. However, specific details such as the value of the deal and the type of chips to be purchased were not disclosed.
On Thursday, Yotta CEO and co-founder Sunil Gupta informed Reuters that the order, which includes about 16,000 of Nvidia’s artificial intelligence chips, the H100 and GH200, is scheduled to be placed by March 2025.
This is in addition to Yotta’s previous order for about 16,000 H100 chips from Nvidia last year, with deliveries scheduled for July this year, Gupta said.
Nvidia’s AI transaction in India assumes vital importance as the company faces hurdles in exporting some chips to China and other countries due to US sanctions.
In September last year, the US chip maker had formed a strategic AI collaboration with Indian conglomerate Reliance Industries and Tata Group. The focus of these partnerships is on the development of cloud infrastructure, language models, and generative AI applications.
Yotta, affiliated with the real estate group of Indian billionaire Niranjan Hiranandani, collaborates with Nvidia in India. The company operates three data center campuses located near Mumbai, Gujarat and New Delhi.
The growing needs of storage and processing in recent years has led to significant investment in cloud and data center infrastructure in India by major players such as Microsoft, Google and Amazon. Notably, Indian billionaires Mukesh Ambani and Gautam Adani have also entered this competitive landscape.
Worldwide, Nvidia holds a virtual monopoly on computational systems driving services such as ChatGPT, OpenAI’s highly successful generative AI chatbot. Yotta estimates that AI adoption in India is expected to reach $14 billion by 2030.
Gupta stressed that realizing India’s AI ambitions depends on setting up the necessary infrastructure within the country. Speaking to Reuters at the Vibrant Gujarat Global Summit held in Prime Minister Narendra Modi’s home state, Gupta highlighted this as an important condition. The summit, one of Modi’s final efforts to attract investment ahead of his upcoming re-election later this year, served as the backdrop for these comments.
During an event in Gujarat on Wednesday, Shankar Trivedi, a key executive of Nvidia, announced that Yotta is setting up an artificial intelligence (AI) data center in Gujarat International Finance Tech-City, a newly developed tech city. This facility is going to be operational by March.
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