Nvidia Corp (NASDAQ: NVDA) is set to make a significant impact on India’s AI chip market with a monumental $500 million deal with Yotta, a prominent Indian data center operator. This move, bringing Nvidia’s total orders from Yotta to $1 billion, signifies a substantial leap in the expansion of Yotta’s AI cloud services.
The deal includes an order for nearly 16,000 Nvidia H100 and GH200 AI chips, with the expected delivery scheduled for March 2025, as reported by Reuters. This follows a prior purchase by Yotta of approximately 16,000 H100 chips from Nvidia, slated for delivery by July of the current year.
These agreements are crucial for Nvidia, especially amid U.S. export restrictions impacting chip sales to countries like China. Nvidia’s strategic partnerships with major Indian conglomerates, such as Reliance Industries and Tata Group, focusing on cloud infrastructure, language models, and generative AI applications, further solidify its position in the Indian market.
Yotta, a part of the Niranjan Hiranandani group, collaborates closely with Nvidia in India and operates data center campuses in Mumbai, Gujarat, and near New Delhi. The increasing demand for storage and processing in India has attracted global tech giants like Microsoft, Google, and Amazon to expand their cloud and data center investments in the region.
Indian tycoons Mukesh Ambani and Gautam Adani are also entering the competitive field, making Yotta’s growing investment in AI infrastructure strategically aligned with India’s ambitious AI goals, estimated to reach $14 billion by 2030.
Shankar Trivedi, a senior Nvidia executive, announced at the Vibrant Gujarat Global Summit that Yotta is establishing an AI data center in Gujarat International Finance Tec-City, expected to be operational by March.
India emerges as a crucial market for Nvidia, facing challenges posed by U.S. semiconductor sanctions on China, a major market for chip designers. The embargo could have severe repercussions, potentially curtailing orders by 50%-60% within five years.
