Nvidia announced three back-to-back enterprise deals with Indian conglomerates in September, deepening its commitment to the growing AI ecosystem in the South Asian Nation.
The chipmaker will partner with Reliance Industries, Tata Group and Infosys to build an AI supercomputer powered by its latest Grace Hopper Superchip and DGX Cloud, that offers businesses a chance to train AI using their cloud computing platform. The supercomputer will be used to develop new AI applications in areas such as healthcare, education, and agriculture.
The deals mark an important step forward in what could be a key growth market for Nvidia as it faces roadblocks in certain chip exports to China due to U.S. restrictions. Nvidia’s blistering year-to-date rally has cooled amid the policy changes, with shares falling more than 15% in September.
“I think this is going to be one of the largest AI markets in the world,” said Jensen Huang, CEO of Nvidia, speaking about advancement in India at a press conference following the announcement.
Nvidia sees India as a growth market compared to China, given rising tensions between the US and China.
“I think Nvidia believes that over time, having a more direct relationship with customers is the way to go, so it can leverage not only its hardware, but also its software environment,” said Hans Mosesmann, managing director at Rosenblatt Securities. “They have that capability and wherewithal, and I think it’s easier to do this early on in India. It makes a lot of sense.”
Impact of the deals
The deals with Reliance Industries, Tata Group, and Infosys are a major coup for Nvidia. The three companies are among India’s largest and most influential conglomerates. By partnering with Nvidia, the companies are sending a signal that they are committed to developing AI solutions in India.
“These partners will help build and operate the physical data center infrastructure to power AI use cases in India, using NVIDIA GPUs & technology,” said Rohit Biddappa, a spokesperson for Nvidia-India.
Along with increased investment in AI, these deals could create new jobs, products and services in the AI sector. India has been a major player in the IT sector, especially in the US. Tata Consultancy Services has even partnered with Nvidia to upskill engineers to operate the new AI technology, according to Business Standard. Overall, the company is bullish on India taking a prominent position in its goal to expand AI supercomputing.
“You have the data, you have the talent,” Huang said. “We are open for business and bring great expertise on building supercomputers.”