Biden-era US AI chip rule looms large over India’s GPU ambitions
Indian cloud companies and data centre providers are on edge as the United States’ new rules restricting the export of advanced AI chips, including graphics processing units (GPUs), take effect next week. The Artificial Intelligence (AI) Diffusion Framework may severely impact India’s ability to import high-end chips like Nvidia’s B200, with estimates suggesting a limit of just 20,000 units under the proposed total processing performance (TPP) limit, industry insiders said. They want the government to take up the issue with US authorities.
The new rules are expected to have a significant impact on India’s AI ambitions, as the country relies heavily on imported GPUs for its data centres and cloud infrastructure. The limitation on importing high-end chips could potentially slow down the growth of India’s AI industry, which has been gaining momentum in recent years.
Industry experts are urging the government to intervene and negotiate with the US authorities to ease the restrictions. “We need to discuss this with the US government to find a solution that works for both countries,” said an industry insider.
The US rules are part of a broader effort to restrict the export of advanced technologies to countries deemed sensitive or risky. However, India has been pushing for more relaxed rules to support its growing tech industry.
The development comes at a time when India is witnessing significant growth in its tech industry, with major investments being made in data centres and cloud infrastructure. The limitation on importing high-end AI chips could potentially derail this growth and impact the country’s AI ambitions.
The issue highlights the complex nature of global tech trade and the need for countries to balance their national security concerns with the need to support their tech industries. As the Indian government navigates this challenge, industry stakeholders are watching closely to see how the situation unfolds.
