The IndiaAI mission, a Rs 10,000-crore initiative to bolster the country’s artificial intelligence (AI) ecosystem, is moving forward with the government shortlisting 7 companies from 19 bidders to provide AI compute and cloud services. Among the prominent contenders are Yotta Data Services, E2E Networks, Jio Platforms, and Tata Communications, according to sources.
The ministry of electronics and IT (MeitY) has invited these shortlisted companies to present their readiness to deploy graphic processing units (GPUs) on January 13, industry sources said. These presentations will play a pivotal role in determining which bidders are empaneled to support the ambitious AI infrastructure project.
The government plans to finalise the empanelment process by the end of the month. The selection will prioritise the most competitive commercial bids, identifying the lowest bidders (L1, L2, L3, etc). The empaneled companies will need to offer their compute services at the price set by the lowest bidder.
Preference for compute infrastructure utilisation will be given to the lowest bidder, followed by the next lowest, ensuring fair and cost-effective access to resources. The empaneled companies will provide GPUs and related infrastructure, which will be available on an hourly basis to beneficiaries like startups, researchers, and academicians.
A major highlight of the IndiaAI mission is the creation of a robust AI compute infrastructure comprising 10,000 GPUs. This facility is crucial for startups and researchers to test and deploy large language models (LLMs) and other AI solutions. The government has earmarked Rs 5,000 crore from the total mission budget for this purpose.
The initiative aims to make GPU access affordable, overcoming the high costs of infrastructure procurement. For instance, running basic AI tasks typically requires at least 100 GPUs, making government intervention vital to democratising AI innovation.
To further its objective, the government will implement a viability gap funding model, subsidising compute costs by up to 50% for startups, researchers, and academic institutions. MeitY has already received 900 applications from startups seeking subsidised access to AI infrastructure, including GPUs, cloud services, and data centre facilities.
As part of the empanelment requirements, companies must install a minimum of 1,000 AI compute units within six months of signing the agreement. They are also expected to submit purchase orders for GPUs within three months of empanelment. The empanelment period will last 36 months, with an option to extend for an additional 12 months based on mutual agreement.
The shortlisted bidders’ presentations will outline their IndiaAI empanelled services, including pricing structures. These details will allow end users to register, monitor service usage, and access compute resources seamlessly.