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AI

Nvidia strikes deals with Reliance and Tata to deepen India’s AI bet

Nvidia's Grace Hopper superchips are displayed at Gigabyte during COMPUTEX Taipei, one of the w... Nvidia's Grace Hopper superchips are displayed at Gigabyte during COMPUTEX Taipei, one of the world's largest computer and technology trade shows, in Taipei, Taiwan May 30, 2023. REUTERS/Ann Wang/
Nvidia's Grace Hopper superchips are displayed at Gigabyte during COMPUTEX Taipei, one of the w... Nvidia's Grace Hopper superchips are displayed at Gigabyte during COMPUTEX Taipei, one of the world's largest computer and technology trade shows, in Taipei, Taiwan May 30, 2023. REUTERS/Ann Wang/

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Nvidia (NVDA.O), a chip maker based in the United States, said Friday that it will collaborate with Reliance Industries and Tata Group, two of India’s largest corporations, to create cloud infrastructure, language models, and generative applications using artificial intelligence.

Despite U.S. limitations on shipments of certain chips to China and certain other countries, the arrangements with two of India’s major business houses would allow the U.S. chip maker to make further inroads into the developing AI ecosystem of the South Asian country.

Before the G20 conference in New Delhi, where delegates including U.S. Vice President Joe Biden will be present, Nvidia CEO Jensen Huang met with Prime Minister Narendra Modi to explore India’s potential in the AI industry.

Jio, a subsidiary of Reliance (RELI.NS), will manage and maintain the cloud AI infrastructure platform that Nvidia will be constructing as part of this cooperation.

In addition to providing an energy-efficient AI infrastructure to scientists, developers, and entrepreneurs throughout India, Nvidia has announced that Reliance will build AI apps and services for its 450 million Jio (telecom) consumers.

According to a joint announcement from the two firms, Tata Consultancy Services (TCS.NS), India’s largest software services exporter, would leverage the Nvidia relationship to create and process generative AI programs and a supercomputer. TCS will use the cooperation to improve the skills of its 600,000 employees.

The announcement said the transaction will accelerate the AI-led transformation of all Tata Group entities, from manufacturers to retailers.

ChatGPT, OpenAI’s popular generative AI chatbot, is powered by a computer system that Nvidia almost exclusively sells worldwide. The artificial intelligence (AI) behind these kinds of applications is called a big language model because it reads a text prompt and generates a natural response.

Asia’s wealthiest man and Reliance Group chairman Mukesh Ambani has previously stressed the need for “digital infrastructure in India that can handle AI’s immense computational demands.”

By working together, Nvidia and Reliance will be able to provide their customers with the most up-to-date versions of their AI chips, the Grace Hopper Superchip, which are designed to efficiently run AI inference operations that are essential to the operation of popular applications like ChatGPT.

Reliance said the new AI infrastructure would hasten some of India’s most important AI initiatives, such as chatbot development, medication discovery, and climate research.

According to Neil Shah, a partner at Counterpoint Research, the AI approach is crucial to “make sense” of the data it possesses from millions of customers and transform it into a digital business offering services outside telecom.

He said that the company’s massive customer base in industries like retail, telecommunications, and finance will benefit greatly from the company’s newly implemented artificial intelligence infrastructure. On Friday, Reuters revealed that Reliance is considering entering the Indian chip manufacturing market.


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