In a strategic move to harness India's burgeoning semiconductor design expertise, Nvidia is reportedly set to partner with the country to develop a custom AI chip. This collaboration aims to leverage India's skilled workforce and expanding technology market, as reported by The Economic Times on Oct. 22.

The potential partnership was a key topic of discussion between Nvidia CEO Jensen Huang and Indian Prime Minister Narendra Modi during their meeting in the US earlier in 2024. The discussions, confirmed by India's Electronics and IT Minister Ashwini Vaishnaw, are still in the preliminary stages. Nvidia's goal is to create a chip specifically tailored to India's needs, with the Indian government currently evaluating the project's costs, benefits and potential applications.

One significant application under consideration is the integration of the chip into the security system of the Indian Railways, known as Kavach. Additionally, the chip could be utilized by Indian startups, companies and government initiatives, particularly as part of India’s AI mission.

Nvidia's market value has soared to $3.39 trillion, positioning it as the second most valuable company globally, just behind Apple. This success is largely driven by its graphics chips, which are crucial for AI technologies.

The company plans to tap into India's vast pool of skilled chip designers, who make up 19% of the global workforce in this field. Many of these designers are employed by international firms, and Nvidia aims to harness this talent to develop a chip specifically for India. Organizations such as the Centre for Development of Advanced Computing (C-DAC) or private Indian firms could play a role in customizing the chip.

Huang has praised India's potential in AI, emphasizing the country's significant role in the future of this technology. Following his meeting with Modi, he highlighted the new opportunities AI presents for growth and innovation in India.