Revised Procurement Norms for AI Computing | 11 Oct 2024
The Ministry of Electronics and IT (MeitY) has revised its procurement norms for Artificial Intelligence(AI) computing capacity under the IndiaAI Mission to encourage broader participation from various companies, including start-ups.
- Revised Procurement Norms:
- Annual Turnover Requirements: For primary bidders, it has been reduced from Rs 100 crore to Rs 50 crore, while non-primary consortium members now need Rs 25 crore, down from Rs 50 crore.
- A primary bidder is an entity that is solely responsible for the successful performance of all subcontractors offered in response to a bid.
- Graphic Processing Units (GPUs) Requirements: The requirement of 1,000 GPUs was changed from a performance threshold of 300 TFLOPS (Tera Floating-point Operations Per Second) for FP16 (Half Precision) to 150 TFLOPS.
- The AI compute memory requirement was reduced from 40 GB to 24 GB.
- TFLOPS measures a system's computing power; for instance, 10 TFLOPS means it can perform 10 trillion FP16 calculations per second.
- Local Sourcing: Components for AI cloud services must be procured from Class I (50% local content) or Class II (20-50% local content) suppliers to comply with the ‘Make in India’ initiative.
- Annual Turnover Requirements: For primary bidders, it has been reduced from Rs 100 crore to Rs 50 crore, while non-primary consortium members now need Rs 25 crore, down from Rs 50 crore.
Read More: IndiaAI Mission