NVIDIA is poised to collaborate with India to create a custom AI chip, leveraging the country’s burgeoning semiconductor design expertise and expanding tech sector. This partnership could establish India as a significant player in the AI chip industry.

The discussions for this collaboration reportedly commenced during a meeting earlier this year between NVIDIA CEO Jensen Huang and Indian Prime Minister Narendra Modi in the United States. India’s Electronics and Information Technology Minister, Ashwini Vaishnaw, confirmed that talks are still in the early phases, with the primary objective of developing an AI chip tailored to India’s specific technological and infrastructure needs.

A significant aspect of this partnership will involve integrating the AI chip into critical sectors within India. One potential application includes enhancing the security system of Indian Railways, known as Kavach, which aims to improve operational safety. Additionally, the chip could support Indian startups, enterprises, and government initiatives, aligning with India’s growing national AI mission. The government is currently evaluating the chip’s cost-effectiveness, benefits, and potential applications.

India accounts for nearly 19% of the global semiconductor design workforce, with many professionals working for international companies. NVIDIA’s collaboration aims to tap into this talent pool to create AI chips optimized for the Indian market. Institutions like the Centre for Development of Advanced Computing (C-DAC) and various leading private firms are expected to play crucial roles in customizing the AI chip to meet local needs.

Huang has lauded India’s potential in artificial intelligence, noting the country’s capacity for driving innovation in the field. Following his discussions with Modi, he highlighted that AI presents India with numerous opportunities for technological advancement and economic growth.

NVIDIA currently holds a market value of $3.39 trillion, making it the second most valuable company worldwide, following Apple. The company’s success is largely attributed to its leading graphics chips, vital for AI-driven advancements. By partnering with India, NVIDIA aims to develop AI chips that not only address domestic needs but also foster innovation across sectors such as transportation, security, and government technology.

This collaboration emphasizes India’s rising significance in the global AI landscape and NVIDIA’s commitment to expanding its footprint in emerging markets. As the discussions advance, the custom AI chip could become pivotal in driving advancements in key sectors, propelling India’s AI mission and reinforcing NVIDIA’s leadership in the global AI chip market.