India’s Yotta plans IPO to build $2 billion AI hub with Nvidia GPUs

India’s Yotta Data Services is building a $2 billion artificial intelligence center Nvidia’s chips, said demand for graphic processing units in the country is outstripping supply as domestic AI models get ready to scale and the local user base grows.

Currently, India has overtaken the US and China in the race to develop an indigenous AI foundation model and lacks a large domestic AI infrastructure. It’s starting to shift.

Last week, during the India AI Summit, some Indian companies launched early or limited versions of their AI models, such as Sarvam AI’s Indus chatbot.

“We are gradually rolling out Indus on limited compute capacity, so you can hit the waiting list first. We will expand access over time,” said Pratyush Kumar, co-founder of Sarvam AI., said in a post on X.

Most of the Indian AI models released at the AI ​​Summit were trained on Nvidia’s GPUs hosted at Yotta facilities, the company’s co-founder, managing director and CEO Sunil Gupta told CNBC’s Inside India on Thursday.

The Mumbai-based data center company, which started sourcing Nvidia GPUs in 2023, now owns 60% to 70% of India’s GPU capacity, Gupta said. Demand is expected to come as global AI companies expand their user base in India, he said.

In recent months, US tech majors OpenAI, GoogleAnd Perplexity has offered their AI tools at little or no cost to millions of users in India.

Among hyperscalers, Google has confirmed its plans to invest $15 billion to build a data center hub in South India., Microsoft will invest $17.5 billion to expand its data center footprint.

Last week, OpenAI became its first customer in India Tata Consultancy ServicesData center business, signed up for 100 MW capacity, with option to scale to 1 GW.

“Through OpenAI for India, we are working together to build the infrastructure, skills and local partnerships needed to build AI with India, for India and in India,” Sam Altman, CEO of OpenAI, said in a February 19 statement.

As the Indian user base of major global AI companies expands, they will need local data centers and GPU capacity, Gupta said. Yotta plans to fund additional GPU purchases through a $1.2 billion to $1.5 billion pre-IPO round and aims to list within the next 12 months, Gupta added.

India has a total data center capacity of 1.93 gigawatts in 2025 and is expected to nearly double to 4 gigawatts by 2028, according to a Feb. 20 report by Nomura.

During the AI ​​Summit, many companies announced plans to invest $277 billion over the next five to seven years, most of which will be directed towards building AI infrastructure in India, the brokerage said.

“Most of these investments will flow into data centers, with domestic and US firms leading hyperscale buildouts and positioning India as a key US technology partner,” the brokerage said.