Let’s dive into the heart of India’s AI revolution and how a 5-year-old data center company, is leveraging cutting-edge global technology to drive the AI advancements that will re-shape our lives in India. This is India’s largest AI bet.
You might be wondering how these big, bulky data centers, which are essentially hardware that stores, processes, and delivers data on demand, can possibly lead the AI revolution in India.
So without wasting time, let’s dive in… We’ll start with some building blocks.
What is Artificial Intelligence (AI)?
AI, is a fascinating and rapidly evolving field that involves teaching computers to think and act like humans. Imagine having a super-smart assistant who can help you with a variety of tasks, from recognizing your voice commands to suggesting what movie you might like to watch next. That’s AI in action!
Here’s the 3-step process for a better understanding of how AI functions:
As a result, when you ask an AI to do something, it gives you a smarter and clearer answer that fits the situation.
If you want to check it for yourself, try asking a question as simple as “How to make someone laugh?” to Google vs. a free AI software like Chat GPT. The difference in both answers will give you a sense of why there is so much buzz around AI.
How AI Works?
AI works by processing large amounts of data and using algorithms to find patterns and make decisions. Think of it like teaching a child to recognize animals. You show them lots of pictures of cats and dogs, and over time, they learn to tell the difference. Similarly, AI systems are trained on vast amounts of data to recognize patterns and make predictions. For instance, OpenAI’s GPT-3 was trained on 45 terabytes of data using thousands of GPUs over weeks.
Before moving forward, let us answer an obvious question that must have popped up in your mind:
What is a GPU?
A GPU (Graphics Processing Unit) is a specialized processor designed to handle graphics and images. Imagine a creative team in an office that specializes in making creative images, posters, etc. While the CPU (Central Processing Unit) manages the overall workflow, the GPU focuses on creating beautiful visuals quickly and efficiently. Interesting, right?. Now we’ll tell you something that’s even more interesting, NVIDIA, a company that dominates the GPU market globally, is estimated to own 98% of the data center GPU market.
The Role of Data Centers
As it is clear from the above points, AI needs a lot of data to learn and make decisions. Data centers provide the massive storage space and powerful processors (like GPUs) needed to handle and process this data quickly and efficiently. Think of a data center as a giant, super-secure warehouse for computers, filled with rows and rows of powerful machines that store, process, and manage all the data and applications a business needs to run.
Yotta Data Services
Yotta Data Services (Yotta), backed by the Hiranandani Group, is a key player in India’s digital infrastructure landscape. The company was founded in 2019 by Sunil Gupta (CEO, “Data Center Man of India”) and Niranjan Hiranandani (Chairman).
India’s Biggest AI Bet – SHAKTI CLOUD
In September last year, Jensen Huang (Co-founder, President, and CEO of NVIDIA) met with PM Narendra Modi and assured him that NVIDIA would prioritize any orders from data centers in India.
The next day, Mr. Gupta met with Mr. Huang to establish data centers powered by NVIDIA’s GPU in India. Later, in December 2023, Yotta announced a partnership with NVIDIA to deliver advanced GPU computing infrastructure for its Shakti Cloud platform, which will be offering cloud services. Yotta committed to invest $1 billion to purchase these cutting-edge GPUs.
Recently, Yotta received over 4,000 H1 chips worth $120-$160 million, becoming the first company in India to do so. Additionally, NVIDIA’s new Blackwell chips, which are 30x faster and use 1/4th the power of H100s, will also be part of Yotta’s arsenal, making Yotta an early adopter of the latest AI tech.
NVIDIA’s chips are essential for training large language models (LLMs) and powering applications like OpenAI’s ChatGPT. These processors will be crucial for YDS, which is planning to launch a platform offering cloud services for AI model training.
Most advanced AI Computing Power at the Cheapest Rates
What’s truly exciting is that Yotta is set to offer AI computing power at the most affordable rates in the world. According to Sunil Gupta, while global GPU usage rates range from $9-12 per GPU/hour, Yotta can provide services for as low as $1.8 per GPU/hour for long-term contracts and $5 per GPU/hour for short-term use. This aggressive pricing strategy aimed to scale Shakti Cloud quickly, with the company expecting to break even within 2-3 years on their $1 billion investment.
Target Customers
Yotta’s services are designed to cater to a diverse range of customers, including startups, large companies, the Indian government, and foreign institutions. The demand is so high that the capacity is already filled, and there’s a waiting list in place. And why not? After all, Mr. Gupta is promising the most affordable access to Nvidia’s most powerful GPUs, empowering Indian businesses and researchers to lead the AI revolution.
AI Adoption in India
India is rapidly embracing AI. According to Satya Nadella, the rate of AI adoption in India is much faster compared to previous tech cycles. The Annual Work Trend Index from Microsoft and LinkedIn reveals that 92% of knowledge workers in India use AI at work, compared to the global average of 75%.
These powerful statistics indicate that AI will continue to proliferate in India, and Yotta is poised to play a significant role in this transformation.
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