India is said to be exploring a potential agreement with Nvidia, a leading US chip company, to procure graphics processing units (GPUs) for its Artificial Intelligence (AI) Mission. The government aims to provide these GPUs at a subsidized rate to startups, academic institutions, researchers, and other users as part of the mission valued at Rs 10,000 crore. While still in the early stages, officials indicated that a decision on the matter is likely to be made post-elections.

Nvidia, with its dominant share in the GPU market, is considered to be the natural choice for the Indian government, the official added. If the plan goes through, it could boost the AI sector in India, providing local players with access to cutting-edge technology. India is exploring two options to provide AI computing infrastructure to its companies, as GPUs have become expensive and scarce. The first option is the "rent-and-sublet" model, where the Ministry of Electronics and Information Technology will acquire GPUs from Nvidia, the report said.

Another approach under consideration is a marketplace model, where the government will promote companies to engage in rental or subleasing agreements with the supplier. Incentives will be provided by the government based on the increased productivity resulting from the use of these GPUs, as part of production-linked incentive (PLI) schemes. This plan was confirmed by another government official. While companies and government agencies globally procure GPUs, it's improbable that any nation will receive preferential access to these limited resources solely due to their federal structure. Thus, consultations are underway with all stakeholders to identify the most effective solutions, as per the report.

A graphics processing unit, or GPU, functions by swiftly performing mathematical computations to render graphics and images. These chips find utility in both professional and personal computing tasks. Given the substantial data requirements of AI applications, GPUs are particularly well-suited for such purposes. As per a spokesperson from Nvidia, access to their GPUs is available to both private and public purchasers through the Nvidia Partner Network. The objective of the AI Mission is to enhance India's innovation landscape and establish it as a frontrunner in artificial intelligence by enhancing computational capabilities.