Indian data centre operator Yotta has announced its plans to invest $500 million in the purchase of AI chips from its partner Nvidia, signaling its dedication to enhancing its AI cloud services. This agreement adds to Yotta’s existing order book with Nvidia, reaching a total value of $1 billion.
While the company did not disclose the specific chips it would be purchasing, Yotta’s CEO, Sunil Gupta, revealed that the order would consist of approximately 16,000 H100 and GH200 chips, scheduled to be placed by March 2025. The decision to invest in AI chips aligns with Yotta’s strategy to meet the growing demand for storage and processing capabilities in India.
This partnership is crucial for Nvidia, as it faces challenges in exporting chips to certain regions, including China and other countries due to U.S. restrictions. In addition to its collaboration with Yotta, Nvidia has formed AI partnerships with other Indian conglomerates such as Reliance Industries and Tata Group to develop cloud infrastructure, language models, and generative AI applications.
Yotta, owned by Indian billionaire Niranjan Hiranandani’s real estate group, is Nvidia’s trusted partner in India and operates three data centre campuses located in Mumbai, Gujarat, and near New Delhi. The company’s ambition to expand its AI capabilities is closely tied to India’s growing market, with Yotta estimating that AI adoption in the country will reach an impressive $14 billion by 2030.
Speaking at the Vibrant Gujarat Global Summit, Yotta’s CEO emphasized the importance of investing in infrastructure to realize India’s AI ambitions. The event, held in Prime Minister Narendra Modi’s home state, serves as a platform to attract investments and fostering economic growth.
Furthermore, Yotta intends to establish an AI data centre in Gujarat International Finance Tec-City, a new technology-based city, which is expected to be operational by March. Through these developments, Yotta aims to solidify its position as a leading provider of AI cloud services in India and cater to the increasing demand for advanced computing capabilities.
In conclusion, Yotta’s decision to invest $500 million in AI chips from Nvidia underscores its commitment to enhancing its AI cloud services and meeting the growing demand for data storage and processing capabilities in India. With AI adoption projected to reach $14 billion by 2030, this investment in infrastructure will play a vital role in realizing India’s AI ambitions and supporting the country’s economic growth.