As India accelerates its AI development under the ₹10,738-crore IndiaAI Mission, Google’s Tensor chip is likely to be included in the next phase of the GPU empanelment process. An official familiar with the matter confirmed that while the chip was initially evaluated alongside those from Nvidia, AMD, and Intel, it did not secure the necessary internal and legal approvals at the time. However, given the continuous nature of the empanelment process aimed at strengthening India’s AI compute capabilities, sources suggest that Tensor’s inclusion is now being reconsidered.
Google’s Tensor, a system-on-chip (SoC) that powers its Pixel smartphones, integrates AI to enhance performance, security, and camera functionalities. If onboarded, the Tensor chip would diversify India’s AI hardware landscape, potentially offering an optimized and cost-effective alternative for specific AI workloads, particularly those leveraging Google’s ecosystem.
India’s GPU procurement under the IndiaAI Mission is set to expand significantly, with projections indicating an increase from the current 18,693 GPUs to nearly 38,000 in the coming months. The government has already allocated GPUs through L1 and L2 bidders from the August 2024 tender, with major suppliers including Jio Platforms, E2E Networks, and Yotta Data Services. Among the GPUs procured, 12,896 are Nvidia H100 units, 1,480 are Nvidia H200, while the rest consist of high-performance AI chips from AMD, Intel, and AWS.
These GPUs will be made accessible to startups and researchers through a dedicated portal under development. The initiative also includes substantial cost reductions, with firms offering steep discounts of up to 89% and an additional 40% subsidy for academia, students, and startups. To facilitate seamless access, application programming interfaces (APIs) will be implemented at both supplier and subscriber ends.
The development comes amid evolving global trade restrictions, particularly the US-imposed export curbs on AI technologies. India currently falls under the second tier of a three-tier export structure, allowing free import of up to 50,000 GPUs. With India’s GPU expansion plans nearing this threshold, further policy adjustments may be necessary in the near future.
Responding to concerns about trade restrictions, IT Minister Ashwini Vaishnaw reaffirmed that India is regarded as a trusted partner by the US. “In a world where India is seen as a reliable ally, the growing relationship built on trust will benefit both nations,” he stated at the World Economic Forum in Davos. Meanwhile, Prime Minister Narendra Modi is scheduled to meet US President Donald Trump in Washington on February 13, where AI cooperation and trade policies are expected to be key discussion points.
