India, July 6 -- India's AI Boom Runs Into A Compute Crunch

The way India buys AI compute power is being rewritten. Amid geopolitical tensions and downstream supply chain cracks, cloud providers are scrambling for next-generation AI chips. But as semiconductors become a strategic resource, who really gets the compute?

Sourcing Squeeze: Experts believe that the worst of the GPU shortage has eased, but demand is still outrunning supply. This friction is impacting the hardware that buyers can actually secure. As chipmakers focus on newer architectures, older-generation chips are becoming relatively easier to source.

But the procurement of newer GPUs remains constrained. This has resulted in slow delivery cycles, forcing cloud platforms to...