India’s top technology services company is riding the artificial intelligence wave with chip giant Nvidia, betting on mutually beneficial partnerships with software giants SAP AG and Oracle Corp.
Tata Consultancy Services Ltd (TCS), Infosys Ltd, Wipro Ltd and Tech Mahindra Ltd last week announced or expanded their partnerships with Nvidia during Nvidia founder and CEO Jensen Huang’s visit to India. TCS has partnered with Nvidia to launch a new business unit to offer industry-specific AI solutions, while Infosys has launched two small language models trained on Nvidia platforms on customer-specific data sets. Wipro announced ready-made AI templates for customers based on Nvidia AI platform, while Tech Mahindra launched a center of excellence powered by Nvidia platform to help customers adopt enterprise AI models.
Earlier this month, Accenture, the world’s largest software services provider, established the NVIDIA Business Group, which will train 30,000 employees to help customers expand the adoption of enterprise artificial intelligence based on the NVIDIA platform.
“IT services companies are working with Nvidia because everyone wants their chips, which are basically their graphics processing units (GPUs). Fortune companies know that Nvidia’s chips work well when embedded in Nvidia’s own software and platforms Very good, they want to use this suite as part of their artificial intelligence workflow,” said an analyst at a domestic brokerage who did not want to be named. “That’s why these companies choose IT service providers as system integrators.”
This AI-to-AI collaboration comes nearly two years after ChatGPT launched to bring Gen AI to the boardroom for discussion, at a time when there was still uncertainty about industry-wide deployment of the technology.
In addition to its main AI chips, some of Nvidia’s products include Nvidia AI Foundry, Nvidia Omniverse and Nvidia AI Enterprise, all of which are designed to help customers integrate artificial intelligence into their work. Nvidia Omniverse helps developers build 3D applications and services, while AI Foundry helps build custom Gen AI models. Nvidia AI Enterprise is a cloud-native software platform.
Another analyst said these partnerships also help Nvidia build out its ecosystem.
“This is a win-win for both parties (IT Services companies and Nvidia). IT Services can gain more business by leveraging the growing customer demand for Nvidia chips and AI platforms, while Nvidia will gain more business by partnering with more IT Services companies Collaborate as a system integrator to expand your ecosystem to gain more business ” Anonymous terms.
Both analysts agreed that these partnerships are similar to those between SAP and Oracle. IT services companies customize software from SAP and Oracle and integrate it into clients’ systems, helping large companies manage human resources, accounting systems and supply chain management.
“It’s like what IT services companies do with SAP and Oracle, where the service provider is the system integrator of the software that these two companies (SAP and Oracle) have to offer,” the Singapore-based analyst said.
Nvidia is best known for designing a class of computer chips widely used in video games because they can render visual effects efficiently. Its secret sauce, however, is chips that can handle complex computing needs and the software needed for artificial intelligence processing. NVIDIA, which had a market value of US$275 billion before launching ChatGPT, now has a market value of US$3.47 trillion, briefly surpassing Apple on Friday to become the world’s most valuable company.
Nvidia CEO Phil Fersht said: “While competitors are investing in building out their own infrastructure stacks, Nvidia remains well ahead of the rest of the market and attracts investment from ambitious service providers keen to develop AI transformational capabilities. Investment. Attention. ” US-based HFS Research is an outsourced research company.
Nvidia generates most of its revenue from the data center market, which accounts for 87% of its total revenue. For the quarter ending July 2024, Nvidia’s revenue was US$30 billion, an increase of 15% from the previous quarter. From this point of view, NVIDIA’s revenue in one quarter is equivalent to that of TCS, India’s largest software services company, in one year. Nvidia’s data center business includes chip business, cloud-based solutions and other computing platforms.
TCS claims to have trained more than half of its 600,000 employees in artificial intelligence, machine learning and Gen AI, while Infosys claims to have trained more than three-quarters of its employees in Gen AI skills. Still, neither of India’s two largest software services companies disclosed the business they received from GenAI.