China’s Lenovo Group will begin making synthetic intelligence (AI) servers at its plant in southern India and opened an AI servers-focussed R&D lab within the tech hub of Bengaluru, the electronics {hardware} maker mentioned on Tuesday.
Lenovo mentioned it goals to make 50,000 AI rack servers and a pair of,400 graphic processing unit (GPU) servers, that are designed particularly for resource-heavy duties like machine studying, yearly on the plant in Puducherry.
“The servers are usually not just for native consumption but additionally for exports,” Amar Babu, president of Asia Pacific at Lenovo, advised Reuters.
He declined to reveal any funding or hiring targets for the R&D lab or the Puducherry plant, at which Lenovo already makes laptops, notebooks and private computer systems (PCs).
The demand for GPUs or AI chips has skyrocketed because the generative AI wave that kicked off in late 2023, boosting the fortunes of the likes of Nvidia and AMD.
AI {hardware} is predicted to nook 12 p.c of the worldwide AI market, which is to just about triple to $380 billion in 2027, in response to a Nasscom-BCG report launched earlier this yr.
Lenovo, which will get about 47% of its income from its non-PC companies, follows the likes of Apple, Foxconn and Dell in growing manufacturing capability in India, partially to decrease their dependence on China.
India too has been luring corporations, together with tech-focussed ones, by offering manufacturing-linked incentives.
Whereas the AI-server manufacturing plan isn’t linked to any authorities incentive scheme, its partnership with India’s Dixon Applied sciences to make PCs and Motorola telephones does take benefit such schemes, mentioned Babu.
© Thomson Reuters 2024
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