Tata and Jio Platforms Place Bids to Provide AI Compute

Nitin Konde, Varun Bhardwaj

Dec 5, 2024 — 2 min read

Tata and Jio Platforms Compete to Provide AI Compute

According to the Ministry of Electronics and IT (MeitY), 19 service providers have put in bids to supply cloud and artificial intelligence (AI) computing services under the INR 10,738 Cr IndiaAI Mission. Cloud service providers, managed service providers, micro, small, and medium-sized businesses (MSMEs), and data centre service providers—including Jio Platforms, Tata Communications, Sify Digital Services, Yotta, and CMS Computers India—were among the organisations that took part in the bidding round.

The other bidders were Vensysco Technologies, CloudThat Technologies, Cyfuture India, I2k2 Networks, Ishan Infotech, Orient Technologies Limited, NxtGen Datacenter and Cloud Technologies, Path Infotech, Shezar Web Technologies, and Unicloud Labs.

Selected Companies will be Empanelled as Agencies

The chosen businesses will be appointed as agencies to offer AI computing services to academics, researchers, startups, and students. In collaboration with commercial entities, the Centre intends to construct infrastructure of 10,000 graphics processing units (GPUs) under the IndiaAI compute pillar. According to a statement from MeitY, 50 service providers attended the pre-bid conference in August 2024. The bids were then opened on December 2, and the deadline for submitting proposals was set on November 28.

Based on the eligibility and technical requirements outlined in the request for empanelment (RFE) document, a technical evaluation committee will now assess the bids that have been received. The qualified bidders will next be instructed to address the panel with their suggested solutions. The "technically qualified bidders" won't be permitted to enter the commercial bids until after that. Additionally, the ministry stated that the empanelment will last for 36 months. However, it stated that if both parties agree, there will be a chance to extend the deadline by another 12 months.

IndiaAI Mission Focuses on Seven Areas

Earlier this year, the federal cabinet authorised the INR 10,738 Cr IndiaAI Mission. Computing, fundamental models, datasets, applications, skill development, startups, and safe AI are its seven main areas of interest. Its goal is to use a public-private partnership (PPP) model to support the domestic GenAI ecosystem.

MeitY secretary S. Krishnan stated in May of this year that when it comes to additional GPU power authorised under the Mission, indigenous enterprises will be given preference. Krishnan had stated at the time that the first set of use cases for AI compute power should be available to researchers and entrepreneurs over the next 18 to 24 months, by the end of the fiscal year 2024–2025 (FY25). Later in September, Krishnan added that after the current 10,000 GPU objective is met, the government may consider using viability gap funding (VGF) to build more "compute capacity."