Economic Survey notes rising AI compute costs amid surging global GPU demand

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The Economic Survey 2025-26, released on January 29, noted that the expansion of India’s artificial intelligence (AI) infrastructure faces headwinds due to rising costs driven by surging global demand for graphics processing units (GPUs) and shortages in high-bandwidth memory chips.

The document highlighted supply-side constraints, noting that even if sovereign or domestic financial institutions are willing to back data centre expansion, such plans could be stalled if essential hardware supplies cannot be secured from international markets.

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Economic Survey notes rising AI compute costs amid surging global GPU demand



The Economic Survey 2025-26, released on January 29, noted that the expansion of India’s artificial intelligence (AI) infrastructure faces headwinds due to rising costs driven by surging global demand for graphics processing units (GPUs) and shortages in high-bandwidth memory chips.

The document highlighted supply-side constraints, noting that even if sovereign or domestic financial institutions are willing to back data centre expansion, such plans could be stalled if essential hardware supplies cannot be secured from international markets.

High…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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