Indian Firm Yotta to Acquire $1B Nvidia AI Chips

Yotta, a leading Indian data center operator, is set to bolster its AI cloud services with a strategic move. CEO Sunil Gupta announced plans to place an additional order of AI chips valued at $500 million from their partner, Nvidia. This decision aims to fortify Yotta's capabilities, bringing the total order value to an impressive $1 billion.

The procurement order, including nearly 16,000 units of Nvidia H100 and GH200 chips, is scheduled for delivery by March 2025. Notably, Yotta had previously expressed its intention to acquire Nvidia AI chips last month, with the total transaction value undisclosed at the time. The company had also placed a substantial order of around 16,000 H100 chips from Nvidia last year, with deliveries expected in July this year.

Nvidia's growing significance in the Indian market is underscored by the impact of an upgraded ban imposed by the United States in October of the previous year. This ban restricted the export of various high-performance AI chips and gaming graphics cards from Nvidia to China and other countries, prompting Nvidia to explore new markets with significant growth potential.

In a collaborative effort to advance AI technology, Nvidia had previously established partnerships with Indian conglomerates Reliance Industries and Tata Group in September of the previous year. Together, they are focused on developing cutting-edge cloud infrastructure, language models, and generative AI applications.

The Indian market is witnessing increased investments from major tech players, including Microsoft, Google, and Amazon, as they expand their footprint in cloud computing and data centers. Billionaires Mukesh Ambani and Gautam Adani have also entered this competitive landscape.

Yotta's optimistic projections anticipate the AI application market in India to reach a staggering $14 billion by the year 2030. Shankar Trivedi, a senior executive at Nvidia, shared during a recent event in India that Yotta is establishing an AI data center in the Gujarat International Finance Tech City, with operations scheduled to commence in March.