Financial support for GPU infra will increase AI adoption, say analysts

While the industry welcomed the announcement, it also highlighted some other areas that need government intervention, including skilling initiatives and regulatory support

The government proposal of financing up to 50 per cent of the cost of setting up artificial intelligence (AI) compute infrastructure is a welcome move, said industry players and analysts.

Many feel that it will bring down graphic processing unit (GPU) usage costs in the country and will speed up the adoption of AI.

“The Ministry of Electronics and Information Technology’s (MeitY’s) plan to finance AI compute infrastructure development is a positive step, demonstrating commitment to AI technology and incentivising industry investment in GPU capacity,” said Amrish Pipada, Founder & CEO, Mega Networks, an AI server manufacturing company.

“The initiative