India’s AI ambitions get boost! Yotta to invest $2 billion in Nvidia chips ahead of IPO launch - Details

Yotta-Nvidia Partnership: India's Yotta Data Services is set to invest over $2 billion in Nvidia’s cutting-edge chips to establish a massive artificial intelligence computing hub. The announcement came on Wednesday as the company's move provides a significant tailwind to India’s growing AI ecosystem and prepares for a transition to the public markets.

On the sidelines of the India AI Impact Summit in New Delhi, CEO Sunil Gupta told Reuters that Yotta aims to secure up to $1.2 billion from investors to fund its expansion prior to an initial public offering, potentially due to happen as soon as this year.

However, he would not provide further details of the capital-raising plans, Reuters reported.

AI drive intensifies in India

While India is currently trailing the U.S. and China in AI development, the country is rapidly becoming a major destination for global data centre companies with a large population and developer community that could help turn massive infrastructure investments into profitable ventures.

That has helped draw nearly $70 billion in investments from tech titans like Microsoft and Alphabet. Furthermore, tightening U.S. export controls on advanced semiconductors has forced a reshaping of global supply chains, encouraging companies to deepen their technological partnerships within the Indian market.

The deployment of more than 20,000 Nvidia Blackwell Ultra chips is expected to be completed by August. Under a strategic arrangement, US-based Nvidia will utilise half of the chips itself over four years for its DGX AI cloud service, which is currently used by Indian IT giants, including Tata Consultancy Services (TCS) and Infosys.

Backed by billionaire Niranjan Hiranandani's real estate conglomerate, Yotta is a partner firm for Nvidia in India and currently operates three data centre campuses across Mumbai, Gujarat, and the National Capital Region.

The upcoming AI supercluster will be deployed in New Delhi, supported by additional capacity from its Mumbai facility.

Sources familiar with the discussion told Reuters that Abu Dhabi’s sovereign wealth fund, Mubadala, is in discussions to invest in Yotta during this pre-IPO phase.

While Yotta has declined to comment on potential investors, Mubadala did not immediately respond to requests for a statement regarding the talks, Reuters reported.