Overview

The Ministry of Electronics and IT (MeitY) has relaxed certain provisions related to the procurement of computing capacity for artificial intelligence (AI) solutions. This decision is part of the Rs 10,370 crore IndiaAI Mission, aimed at enhancing the country’s AI capabilities.

Key Relaxations

Annual Turnover Requirements

• Primary Bidders: Turnover requirement reduced from ?100 crore to ?50 crore.
• Non-Primary Consortium Members: Requirement halved from ?50 crore to ?25 crore.

Computing Capacity Adjustments

• The performance threshold for successful bidders has been revised:
  • FP16 Performance: Reduced from 300 TFLOPS to 150 TFLOPS.
  • AI Compute Memory: Reduced from 40 GB to 24 GB.

Importance of the Changes

These adjustments respond to concerns raised by smaller companies about exclusionary requirements that favored larger firms. The aim is to create an inclusive environment that allows start-ups to participate in the AI landscape.

AI Mission Goals

• Establish a computing capacity of over 10,000 GPUs.
• Develop foundational models with capacities exceeding 100 billion parameters.
• Focus on priority sectors such as healthcare, agriculture, and governance.

New Technical Criteria

• Companies must demonstrate experience in offering AI services over the past three financial years.
• Minimum billing of ?10 lakh required for eligibility.

Local Sourcing Requirements

• Components for cloud services must be procured from Class I or Class II local suppliers as per the ‘Make in India’ initiative:
  • Class I Supplier: Domestic value addition of at least 50%.
  • Class II Supplier: Local content between 20-50%.

Data Sovereignty and Service Delivery

• All AI services must be delivered from data centres located in India.
• Data uploaded to cloud platforms must remain within India's sovereign territory.

Implementation Strategy

• The Rs 10,370 crore plan will be implemented through a public-private partnership model.
• 50% viability gap funding has been allocated for computing infrastructure development.

Conclusion

The relaxations in AI compute procurement norms aim to support the growth of start-ups in India, fostering an environment conducive to innovation in artificial intelligence. With these changes, smaller companies are better positioned to contribute to the country's ambitious AI goals.