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Updated: July 01, 2025 07:14
India's aggressive push into artificial intelligence is making the country a foreign and domestic cloud vendor hub. With government-supported GPU buys, AI infrastructure efforts, and a thriving startup ecosystem, cloud companies are vying to capitalize on India's digital backbone.
Key Drivers
Government-funded research GPU acquisitions have surpassed 34,000 units, distributed to research institutions and start-ups
Cloud companies such as Yotta, Tata Communications, and Jio Platforms are among the largest beneficiaries of AI infrastructure deployment
India's AI expenditure will be $9.2 billion in 2028, increasing at a rate of 35 percent each year
Strategic Shifts in Progress
Public Cloud, Private Benefits
The Ministry of Electronics and IT has brought on board 10 cloud providers to power the India AI Mission
Yotta supplies individually almost 17,000 GPUs, 70% of whose revenue is anticipated to come from government-backed AI demand.
Tata Communications and Jio are accelerating GPU capacity to address booming enterprise and public sector demand
Startups in the Fast Lane
These beneficiaries are Sarvam, Soket AI Labs, and Gnani.ai, which now benefit from high-performance compute
These start-ups are developing core models and AI solutions for sectors like healthcare, education, and governance
Cloud as the New Utility
Cloud utilization is currently regarded as critical to the scalability of AI
Firms are moving away from pilot projects towards factory-scale AI deployments
Demand is exceeding supply, and suppliers are working to grow aggressively
Emerging Trends
India's AI ecosystem is being shaped by national initiatives like "Making AI Work for India"
Cloud providers are providing discounted access to GPUs to drive adoption
The government is also investing in AI training, policy, and ethics to create a digital future for sustainability
Sources: Daily Expert News, Economic Times, IndiaAI, IDC Asia/Pacific, Ministry of Electronics and IT, CIO News, Qlik Research Reports
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