During his five-day tour of India, Nvidia CEO Jensen Huang engaged with tech leaders, researchers, and Prime Minister Narendra Modi to explore the country’s AI sector. The visit, although ceremonial in appearance, had a clear business focus: to assess India’s AI potential.

As the US imposes stricter restrictions on exporting high-end chips to China, India emerges as a promising hub for AI talent, chip manufacturing, and Nvidia’s products. The alignment between Nvidia and India centers around their shared interest in promoting India’s dominance in AI. With restrictions on selling top-end microprocessors to China, India remains an untapped market.

For Nvidia, whose graphics processors are crucial for AI system development, India presents a unique opportunity. During a meeting in Delhi, Huang emphasized the need to retrain India’s workforce and leverage Indian data and talent for building future AI models. He expressed strong confidence in India’s engineering capabilities amidst the AI boom.

Huang believes India has the potential to become one of the world’s largest AI markets due to its vast population and data resources. Nvidia, with four engineering centers and 4,000 engineers in India, strategically positions itself to capitalize on this burgeoning market.

India, as an untapped market, has attracted Nvidia’s interest in investment. While the country currently lacks cutting-edge chip manufacturing capabilities, it aims to strengthen its electronics manufacturing sector and leverage AI for economic growth. The government is providing substantial subsidies to establish chip manufacturing infrastructure, attracting companies like Nvidia, Advanced Micro Devices, and Intel.

Nvidia sees India as a crucial part of its future plans, as emphasized by Nandan Nilekani, Chairman of Infosys Ltd. The government and major corporations are actively investing in AI infrastructure, positioning India as a top destination for AI development and innovation.

Huang’s discussions with Indian tech giants Reliance and Tata resulted in plans to build advanced AI supercomputing data centers and offer AI infrastructure as a service. This partnership solidifies India’s role in Nvidia’s global strategy.

Nvidia’s entry into India signifies a significant move to tap into the country’s AI potential and establish a presence in the global AI landscape. Huang’s visit highlighted India’s prospects and paved the way for collaborations and AI advancements that will shape the future of the tech industry.