India AI mission GPU hourly pricing aggressively low
The IndiaAI Mission GPU tender generated aggressive bidding activity that resulted in GPU hourly prices averaging Rs 115.85 which was significantly lower than the global average of $2.5 to $3.
India AI mission GPU hourly pricing aggressively low
Bidders worried that their global AI clients will start demanding lower rates because of the ultra-low GPU pricing in the IndiaAI Mission’s GPU tender.
Five companies out of 10 technically qualified bidders offered the lowest prices for 30 types of GPUs in on-demand and reservation options of one, six, and 12 months. The lowest bid prices came from Jio Platforms, E2E Networks, NxtGen Datacenter and Cloud Technologies, Locuz Enterprise Solutions (an Amazon Web Services (AWS) partner) and CtrlS Datacenters.
According to MeitY GPU tender on Thursday the average bid price was Rs 115.85 ($1.34) per GPU hour whereas the global average stands at $2.5-3.
A bidder explained to ET that discovered L1 rates showcase aggressive pricing compared to international markets.
Should Yotta reduce the price for its GPU models customers globally will likely demand similar IndiaAI Mission GPU pricing. Global customers will apply pressure by questioning why they face high charges while competitors in India offer similar GPU models at reduced prices.
Gupta failed to provide a response when ET requested their commentary.
One of the successful bidders CtrlS runs fifteen data centers spread across eight different markets. The company declared its intention to venture into Southeast Asian and Middle Eastern markets with Thailand as its initial international target.
The Ministry of Electronics and Information Technology will write to ten technically qualified bidders to align their rates with the L1 pricing. One of the previously mentioned bidders expressed that the successful matching party will be placed on the panel.
Among the 30 e2e networks provided the highest discount rate at 89.17% for an H100 model.
NxtGen Datacenter and Cloud Technologies' chief executive AS Rajgopal stated to ET that their pricing model does not involve predatory tactics. The service industry generates continuous revenue streams which result in significant financial losses over time if money is lost. Our pricing strategy operates on fairness without having a market price that reaches four times our initial quotation. We want to make a fair margin.”
