India is set to launch a regulatory body for overseeing artificial intelligence initiatives, utilizing a strategic "hub-and-spoke model" to solidify its position in the global AI landscape. A new AI Compute Facility will soon commence operations, offering significant advantages to both domestic and international stakeholders. The facility will host foreign AI models, such as those from China's DeepSeek, while ensuring that all data from Indian users remains within the country's borders, adhering to stringent data localization mandates.
The forthcoming AI Compute Facility aims to provide steep discounts on computing services to firms operating in India, enhancing accessibility and affordability. Standard AI computing services will be available at a 42% discount compared to market rates, while high-precision computing will receive a 47% discount. This initiative seeks to stimulate the development of AI models and technologies on Indian soil, capitalizing on the nation's burgeoning tech industry.
In the technical domain, the facility has secured an impressive array of 18,693 graphics processing units (GPUs), with nearly 13,000 being Nvidia H100 GPUs and approximately 1,500 Nvidia H200 GPUs. As the operation gears up to begin "in the coming days," about 10,000 GPUs are already primed for immediate deployment. Such resources underscore India's commitment to establishing a formidable AI infrastructure.
“A common compute facility is the most important component for creating a robust AI ecosystem,” noted industry insiders, highlighting the strategic importance of this development.
The facility's establishment aligns with India's broader objectives to nurture AI-driven applications across various sectors, including agriculture, climate change, and learning disabilities. The nation's proactive stance reflects its ambition to drive innovation in AI while preserving technological sovereignty. Additionally, India's decision to ban over 300 Chinese-linked apps and services, citing national security concerns, emphasizes its cautious approach to foreign technology influences.
“Data privacy issues regarding DeepSeek can be addressed by hosting open-source models on Indian servers,” suggested experts, addressing concerns over data security.
India's move has garnered interest from major chip designers keen on collaborating with the country to develop indigenous GPUs. This endeavor is expected to attract significant investment, with projections indicating that hyperscalers and data centers will inject $30 billion into the economy over the next two to three years.
“We believe there are at least six major developers who can develop AI models in six to eight months on the outer limit, and four to six months on a more optimistic estimate," industry analysts predict as they foresee rapid advancements in AI capabilities facilitated by the new facility.
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