Introduction
NVIDIA, a leading name in the GPU market, has revolutionized the world of computing and artificial intelligence with its powerful graphics processing units (GPUs). In fact the name “Nvidia” has become synonymous for GPU’s These GPUs are essential for tasks ranging from gaming to AI model training, making them highly sought after globally. However, the Indian market has faced significant challenges in accessing these coveted GPUs, raising questions about the reasons behind the delay. In this article we will try to uncover “Why India is Still Waiting for NVIDIA GPUs ?”. So , let us dive in.
Current Scenario of Nvidia GPU’s in India
Recently, NVIDIA’s chief Jensen Huang delivered the first NVIDIA DGX H200 to OpenAI, marking a significant milestone. However, similar gestures towards Indian AI companies are noticeably absent. For example, when Yotta received a shipment of 4,000 GPUs, the boxes bore the ASUS logo with little evidence of NVIDIA’s involvement. ASUS facilitated Yotta’s acquisition of NVIDIA GPUs by providing the ESC N8-E11 server equipped with eight NVIDIA HGX H100 GPUs, enhancing Yotta’s Shakti Cloud platform for AI model development and deployment.
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Why Are NVIDIA GPUs So Scarce in India?
So , till now we discussed the scenario of Nvidia GPU’s in India . So , by now you must be thinking “Why India is Still Waiting for NVIDIA GPUs ?” . Do not worry , we got you covered. Actually there are several factors that contribute to the scarcity of NVIDIA GPUs in India:
Global Demand and Supply Chain Issues: The global demand for GPUs has skyrocketed due to the rise of AI, gaming, and cryptocurrency mining. This increased demand has strained the supply chain, causing delays and shortages worldwide, including in India.
NVIDIA’s Partner Program: NVIDIA distributes its GPUs through a tiered partner program. Elite partners, who demonstrate exceptional commitment and meet specific criteria, receive priority. This system has created a bottleneck, making it difficult for smaller companies and markets to access GPUs.
Import and Regulatory Challenges: Importing high-end technology into India involves navigating complex regulatory frameworks and logistical hurdles. These challenges can delay shipments and increase the cost of GPUs.
High Costs and Economic Factors: The high cost of NVIDIA GPUs is another barrier. For many Indian companies and startups, the financial investment required to procure these GPUs is substantial, limiting their ability to purchase them in large quantities.
Market Focus and Strategic Priorities: NVIDIA’s strategic focus has been on markets with higher immediate returns, such as the United States and Europe. As a result, countries like India, despite their potential, may not receive the same level of attention and resources.
NVIDIA’s Elite Partnership Program
NVIDIA sells its GPUs through the NVIDIA Partner Program, which includes Registered, Preferred, and Elite categories. Elite partners represent the highest level of partnership, reserved for those demonstrating exceptional commitment. While we were discussing the scenario of Nvidia GPU’s in India we had talked about Yotta. For our surprise also in India only Yotta has achieved this Elite Partner status, indicating NVIDIA’s significant support and high-priority allocations for the company.
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Challenges in Procuring NVIDIA GPUs
Acquiring NVIDIA GPUs is no small feat. High-end GPUs like the H100 are particularly scarce in India. Vivek Raghavan, founder of Sarvam AI, noted that these GPUs are not readily available, though this situation is expected to improve. Similarly, Vishnu Vardhan, SML chief and creator of Hanooman, faced difficulties in sourcing NVIDIA GPUs, often having to search extensively to purchase them.
Impact on Indian AI Startups
Despite the shortage of NVIDIA GPUs, Indian AI startups have shown remarkable resilience. For instance, Ola Krutrim, an AI unicorn, has been pre-training its foundational models using the Intel Gaudi 2 cluster. Ola Krutrim has also launched the Krutrim AI Cloud, offering developers access to various open-source models, though it remains unclear if they use NVIDIA GPUs.
Zoho Corporation is also exploring alternatives. Its enterprise IT management division, ManageEngine, invested significantly in GPUs from Intel, AMD, and NVIDIA to diversify its options and mitigate the impact of the NVIDIA GPU shortage. By the way if you don’t know Both Ola and Zoho come under top AI Indian Startups.
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Government Initiatives
The Indian government is taking proactive steps to address the GPU shortage. The Union Cabinet approved an AI program worth INR 10,371.92 crore, which includes deploying 10,000 GPUs through public-private partnerships. The government plans to use a rent-and-sublet model to make these GPUs accessible to AI startups, fostering innovation and development.
Future Prospects
NVIDIA has promised to deliver tens of thousands of GPUs to India, partnering with major players like Reliance, Tata, and the government. The establishment of a cluster of 25,000 GPUs for startups is also in the pipeline. These initiatives are expected to materialize post the Lok Sabha elections, potentially transforming the landscape for AI and computing in India.
Conclusion
The delay in the availability of NVIDIA GPUs in India is a multifaceted issue involving supply chain complexities, partnership structures, and market dynamics. Despite these challenges, Indian AI startups continue to innovate and adapt, leveraging alternative technologies and government support. The future looks promising, with significant commitments from NVIDIA and proactive government initiatives poised to enhance GPU availability and support the burgeoning AI ecosystem in India.
FAQs on Why India is Still Waiting for NVIDIA GPUs ?
1. Why are NVIDIA GPUs crucial for AI development?
NVIDIA GPUs are crucial for AI development due to their high computational power and extensive software libraries, which facilitate efficient AI model training and deployment.
2. What alternatives are Indian AI startups using?
Indian AI startups are exploring alternatives such as Intel Gaudi 2 clusters and GPUs from AMD and Intel to mitigate the impact of NVIDIA GPU shortages.
3. How will the Indian government’s initiatives help in GPU availability?
The Indian government’s initiatives, including a substantial AI program and the deployment of 10,000 GPUs through public-private partnerships, aim to improve GPU availability and support AI startups in India
