Exclusive | Affordablity Is Key To AI Success In India: Peak XV's Rajan Anandan

India's artificial intelligence sector has faced a shortage of high‑performance computing hardware, with active graphics processing units (GPUs) remaining under 10,000 at the close of 2025. This scarcity limited the ability of startups and research labs to train large models, slowing the pace of innovation compared with global peers. Anandan highlighted that the recent surge in GPU availability, driven by lower prices and increased imports, has begun to ease this bottleneck, allowing more companies to experiment with advanced AI techniques.

The rapid growth in GPU numbers reflects a broader shift in the market, where manufacturers are offering more cost‑effective solutions and cloud providers are expanding their AI‑focused services. Anandan emphasized that without affordable hardware, even well‑funded ventures would struggle to scale their models, making price a decisive factor for the sector's future. The ten‑fold rise in active GPUs suggests that the supply chain is responding to demand, but sustained price reductions will be needed to keep momentum.

For Indian readers, the development matters because AI is expected to influence many industries, from agriculture and healthcare to finance and education. Lower hardware costs can enable smaller firms and academic institutions to participate in AI research, fostering a more inclusive ecosystem. As the country aims to become a global hub for technology, ensuring that AI tools are within reach for a wide range of users will help drive job creation, improve public services and keep India competitive on the international stage.