Why Are NVIDIA GPUs Scarce in India? Unveiling Supply Issues

NVIDIA GPUs have become a staple in the tech industry, especially in artificial intelligence (AI) and machine learning applications. However, Indian AI companies are struggling to access these powerful tools, leaving many AI startups and tech companies without the essential hardware for high-performance computing. 

Recent reports suggest that NVIDIA GPUs may not be widely available in India until after the Lok Sabha elections, raising concerns about the impact on AI startups and the broader tech ecosystem.

NVIDIA’s Limited Partnerships in India

One of the key reasons behind the shortage is NVIDIA’s exclusive partnership with Yotta, India’s sole NVIDIA Partner Network Cloud Partner (NCP). As an Elite partner, Yotta has priority access to NVIDIA’s GPU supply, allowing the company to scale its GPU inventory to 32,768 units by the end of 2025. This partnership, however, means that other AI startups and tech companies in India face significant challenges in obtaining NVIDIA GPUs like the H100.

The Scarcity Problem for Indian AI Startups

Despite NVIDIA’s partnership with Yotta, many Indian AI startups still struggle to acquire high-end NVIDIA GPUs like the H100. Vivek Raghavan, founder of Sarvam AI, noted that these GPUs are difficult to find in India, leading startups to search extensively to meet their computing needs. Similarly, Vishnu Vardhan, founder of Hanooman, mentioned that the scarcity of NVIDIA GPUs forced them to look for alternative sources. 

Exploring Alternatives to NVIDIA GPUs

Despite the challenges, Indian AI startups remain resilient, leveraging alternative solutions and technologies to advance their AI initiatives. Ola Krutrim, an Indian AI unicorn, is using Intel’s Gaudi 2 cluster to pre-train its foundational models, while Zoho’s ManageEngine division is investing in GPUs from multiple providers, including Intel, AMD, and NVIDIA. This diversification underscores the need for reliable GPU supply chains in India.

Government Initiatives and Future Prospects

The Indian government has approved an INR 10,371.92 crore AI program, which includes deploying 10,000 GPUs through public-private partnerships. This move aims to increase accessibility and support for AI startups in India. NVIDIA also announced partnerships with Reliance, Tata, and the Indian government to establish a cluster of 25,000 GPUs for startups.

While the shortage of NVIDIA GPUs continues to challenge the Indian tech industry, these government initiatives and partnerships offer hope for a more robust GPU supply chain shortly. The anticipated availability of GPUs post-Lok Sabha elections could mark a turning point, enabling Indian AI startups to access the resources they need for innovation and growth.

Also Read: Why did NVIDIA Acquire GPU Orchestration Software Run AI?