How Tata Group and Nvidia’s Shocking Partnership Will Transform AI in India
Nvidia, a US chipmaker, is working with Tata Communications to improve AI in India. They will be focused on building an AI cloud and solving problems with money and growth.
In an exclusive talk, Managing Director (MD) and Chief Executive Officer (CEO) A.S. Lakshminarayanan said that Tata Communications Ltd has started putting the first batch of Nvidia’s artificial intelligence (AI) chips to use within the business.
The digital infrastructure provider is putting money into building up its own AI skills. According to Lakshminarayanan, some users will soon be able to get the chips, and more people should be able to get them by the end of the year.
Tata Communications and Nvidia are working together to make an AI cloud in India. The goal of this relationship is to give businesses, like Tata Consultancy Services Ltd (TCS), important AI computing infrastructure and platforms.
Financial Performance
Tata Communications made 333 crore in the quarter that ended on June 30. That’s 13% less than the same quarter last year. However, the company’s sales rose 18% to Rs 5,633 crore. Earnings before interest, depreciation, taxes , and amortisation (Ebitda) went up by 9.8%, from Rs 1,024 crore in the same quarter last year to Rs 1,124 crore this year. The Ebitda profit went down by 150 basis points from 21.5% in Q1 FY24 to 20%, even though the revenue went up. The CEO, on the other hand, said that the drop in Ebitda margin was expected and in line with their plan to spend in growth in the future.
Organic Growth and Government Support
The company said in the March 2024 quarter that one of its firms had sent a customer a notice of termination, pointing the finger at Vodafone Idea Ltd without naming it. They were also talking about a plan for the customer to stop doing business with them. There are still more talks going on about past due bills.
The main goal, according to Lakshminarayanan, is to grow naturally. The recent purchases of The Switch and Kaleyra will help with this, and they should start making money within two years. Lakshminarayanan also talked about how important it is to give telecom companies fair prices when they lease airwaves for private 5G networks. He said that 5G isn’t being used very much yet because it’s too expensive.
The government of India has plans to help businesses, but private business networks need more help. Also, he said that the ecosystem of 5G devices for companies needs to grow, and businesses need to figure out the return on investment (ROI) before signing contracts.
