NVIDIA CEO Jensen Huang's recent meeting with Indian Prime Minister Narendra Modi has sparked speculation about the potential establishment of a GPU and AI chip manufacturing facility in India.
According to Firstpost, Modi and Huang engaged in a substantial conversation, focusing on the promising prospects India presents in the field of artificial intelligence (AI).
Jensen Huang, CEO of NVIDIA, speaks during a press conference at the Computex 2023 in Taipei on May 30, 2023.
NVIDIA CEO 'Fantastic Discussion' With India's Prime Minister
Narendra Modi shared this news via X, formerly Twitter, accompanied by images of their meeting, saying, "Had a fantastic discussion with Mr. Jensen Huang, the CEO of @nvidia. We delved into the vast potential that India holds in the AI domain."
He further noted that Huang acknowledged India's advancements in this sector and expressed optimism about the country's talented youth.
This significant encounter has triggered conjecture that NVIDIA, a global leader in AI chip and GPU manufacturing, might be considering the establishment of a manufacturing plant in India.
NVIDIA has nurtured strong ties with India over the years, with its initial foray into the Indian market dating back to 2004, when it established its initial base in Bangalore.
Presently, India hosts four engineering development centers in Gurugram, Hyderabad, Pune, and Bengaluru, employing over 3,800 professionals at NVIDIA.
Moreover, NVIDIA has fostered a community of developers in India, with more than 320,000 developers actively participating in the company's developer program based in India.
US Chip Restrictions
In related news, NVIDIA has raised concerns about the enduring consequences of stringent US chip restrictions on American chipmakers, particularly in the context of China's chip procurement limitations.
The California-based hardware company has warned that these ongoing AI chip export restrictions could result in a "permanent loss" for semiconductor firms in the United States.
NVIDIA had previously ventured into selling H100 and A100 GPUs to China in 2022, which complied with US export control regulations.
NVIDIA's CFO, Colette Kress, stated during an earnings call that the current regulations have been effective, and additional export restrictions on their data center GPUs are not expected to have an immediate material impact on their financial results.
Kress also highlighted the potential for long-term harm to the US industry if Washington continues to prohibit the sale of graphics processing units to China, curtailing China's capacity to leverage AI through hardware.
Despite these constraints, NVIDIA has continued to witness robust demand for its semiconductors tailored for AI applications. The company reported fiscal third-quarter revenue of approximately $16 billion, marking a remarkable 170% growth from the previous year.
Given the surging demand for AI-related hardware in the region, NVIDIA is expected to maintain its supply of less powerful GPU versions to China.
Related Article: US Fears AI Chips Could Slip into the Hands of China Following Nvidia Export Restrictions
