India's AI Chip Race: 38,000+ GPUs Powering Local Innovation

India's government has approved the IndiaAI Mission, allocating over 38,000 GPUs to create a shared AI compute infrastructure. This initiative aims to decrease reliance on overseas capacity and foster the development of indigenous AI models by startups, researchers, and enterprises.

This strategic move is supported by a rapid expansion in digital infrastructure, with India's data center pipeline reaching 8.33 GW. The AI infrastructure market is projected for substantial growth, set to increase from ₹11,540 crore in FY26 to ₹28,290 crore by FY30.

E2E Networks, a sovereign provider of cloud GPUs, is significantly expanding its fleet. The company has scaled from 1,900 GPUs to 3,900 in FY26, with plans for 5,100 by Q1FY27, including over 1,024 NVIDIA B200 GPUs. This expansion is driving strong revenue growth and improved margins, with Q1FY27 EBITDA surging 1022.8% and profitability achieved.

Netweb Technologies, a leading OEM for High-end Computing Solutions, is also a major player. Its AI systems segment, accounting for 62.3% of Q1FY27 revenue, focuses on the entire AI stack. Netweb reported a 172.1% year-over-year revenue increase to ₹819.7 crore, supported by a strong order book of ₹2,506.9 crore.

Both companies benefit from India's sovereign AI policy and domestic mandates. E2E focuses on GPU cloud capacity, while Netweb provides domestically manufactured AI servers and HPC systems. Their ability to execute and expand capacity will be key to justifying their valuations amidst India's burgeoning AI infrastructure sector.