Nvidia, a global leader in chip-making, has urged India to establish AI factories to accelerate the country’s artificial intelligence revolution. Vishal Dhupar, Managing Director of Nvidia South Asia, emphasized the need for manufacturing intelligence in the country, which can then be consumed domestically and exported abroad. Establishing AI factories in India will take the next leap in the AI revolution by creating specialized hubs for AI innovation.
Speaking at the Umagine 2025 event in Tamil Nadu, Dhupar stated, “The number one opportunity for India and Tamil Nadu is to create manufacturing plants dedicated to intelligence-AI factories.” He clarified that these AI hubs are different from traditional data centers, highlighting the importance of focused AI manufacturing.
Shift Toward Accelerated Computing
AI factories in India will take the next leap in the AI revolution by enabling seamless integration of AI into sectors like healthcare, education, and logistics. Dhupar also pointed out that India must shift to accelerated computing rather than relying on general-purpose computing. He compared the country’s potential to leapfrog in this area to its successful transition to mobile technology. “Accelerated computing means enhancing the graphics processing units (GPUs) and CPUs,” Dhupar explained.
Nvidia, with its 90% market share in the AI chip market, holds a significant advantage in this space. The company’s expertise in GPUs positions it as a market leader, leaving competitors like Advanced Micro Devices (AMD) and Intel far behind.
AI Boom and India’s Strategic Advantage
The company’s record-breaking revenue further underscores the AI boom. Nvidia’s third-quarter revenue surged to $35.1 billion, with data center revenues soaring by 112% compared to the previous year. AI factories in India will take the next leap in the AI revolution by promoting collaboration between the government, private sector, and research institutions. Dhupar noted that the Indian government has already made strides to foster AI growth, citing the AI strategy paper from 2018 and the establishment of the AI Mission.
He acknowledged that while progress has been made, India must continue its push toward integrating AI into its infrastructure. Companies like TCS are working to streamline workflows, but there is still a long way to go.
Dhupar also discussed the future of data centers, focusing on sustainability. He mentioned that India has a unique opportunity to host high-density data centers with capacities of up to 250 kW, especially in less populated regions with access to abundant power and water. These centers would be key in supporting the country’s growing AI infrastructure.
AI Adoption in Warehousing
Despite significant advancements in warehouse automation across India, the integration of AI into warehousing is still in its early stages. A report by Mordor Intelligence predicts that the India Warehouse Automation Market will grow from $0.34 billion in 2024 to $1.12 billion by 2029, with a compound annual growth rate (CAGR) of 26.96%. However, many Indian warehouses still rely on traditional systems and struggle to adopt AI due to high costs and a lack of skilled personnel.
Several challenges hinder the widespread adoption of AI in Indian warehouses. One major issue is the limited availability of local software vendors capable of developing and supporting advanced AI solutions tailored to the Indian market. As a result, many companies turn to global vendors, which can be expensive and may not always suit local requirements.
Moreover, warehouses face difficulties in implementing AI due to the absence of clear guidelines and integration strategies. Cybersecurity also remains a significant concern as increasing digitization raises the risk of data breaches.
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