Nvidia (NVDA) has set its sights on the Indian market to pursue growth opportunities around artificial intelligence. The world’s most valuable company has inked a strategic partnership with tech giants Infosys, TCS, Tech Mahindra, and Wipro to accelerate AI adoption in one of the world’s most valuable markets.
Nvidia India AI Plans
The chip giant has also inked a deal with Reliance to develop a 1 gigawatt AI infrastructure in Gujarat. The center is to leverage the country’s robust IT ecosystem in the race to support and accelerate the development of following-generation applications.
In order to meet the increasing demands of various industries, Nvidia is also expanding its GPU deployment in India by nearly tenfold by scaling data center capacity with Yotta Data Services and Tata Communications. Nvidia’s action demonstrates its geographic diversification as the United States vigorously enforces its embargo on semiconductor technology against nations such as China.
Chip dominance, especially on graphic processing units, has propelled Nvidia to dethrone Apple (AAPL) as the world’s most valuable company. The increasing demand for the company’s specialized AI chips, which are essential for enabling cutting-edge AI systems and applications, is mainly responsible for the company’s rise to overtake Apple in market capitalization.
Thanks to the competition between tech giants like Microsoft, Alphabet, and Meta Platforms to control emerging AI technologies, the company has emerged as the leading supplier of processors used in AI computing. Investor confidence in Nvidia’s prospects has been further reinforced by the recent announcement of a US$6.6 billion funding round by OpenAI, which created ChatGPT.
AI Enhancing Healthcare
Nevertheless, Nvidia is not the only company sending shockwaves about artificial intelligence innovations. Tech giants are increasingly setting sights on the healthcare sector with an array of AI-powered solutions and applications to solve various problems, from reducing documentation time to optimizing operation room schedules.
Consequently, Alphabet’s Google (GOOGL) has collaborated with Community Health Systems and the Cleveland Clinic to test technologies that range from a cloud services platform tailored to the healthcare industry to a document search tool for electronic health records.
Microsoft (MSFT) said it would make it easier for health systems to build their own AI tools directly. The company is also leveraging generative AI to help health systems organize their unstructured data and imaging and medical imaging data to enable clients to build their own AI agents.
AI Fuelling Power Demands
Amid increased artificial intelligence adoption, there are growing concerns that the energy needed to power the revolutionary technology could end up outstripping the entire United States grid.
Around 500TWh of power was used by AI and data centers last year. In other words, if AI and data centers were a nation, their electricity demand would already be the ninth highest in the world, tucked between Germany (10th) and South Korea (8th). The combined power consumption of data centers and AI could reach an astounding 4,500TWh by 2050. Last year, that would have been sufficient to power the whole US, with enough spare change to keep the lights on in France as well.
Tech behemoths like Amazon, Google, and Microsoft are now among the world’s biggest corporate power consumers and the biggest corporate purchasers of green power due to the spike in power demand from AI-enabled data centers.
Amazon (AMZN) has already purchased 8.8GW of clean energy capacity last year, quickly becoming the world’s largest buyer. Amazon’s clean power fleet now stands at 33GW, surpassing the combined generating capacity of nations like Belgium and Chile. In recent months, Google has signed the first-ever corporate off-take agreement for small modular reactor plants, while Microsoft, Amazon, and Google have all signed power purchase agreements with nuclear developers for their data centers.
