L&T signed a Rs 15,000 crore deal with Together AI and Nvidia for a 10,000-GPU cluster in Chennai. The massive AI infrastructure bet completely bypasses E2E Networks, where L&T bought a 21% stake in 2024 for its AI platform. E2E's existing GPU fleet sits at 40% utilisation, burning cash while L&T shifts direction.
How We Got Here
L&T acquired a 21% stake in E2E Networks for Rs 1,079 crore in 2024, aiming to leverage its "cloud and AI layer." An L&T executive stated their initial intent was to use E2E for software orchestration atop their physical infrastructure expertise.
The Numbers
- L&T's new 10,000-GPU cluster will be built with Together AI and Nvidia in Chennai.
- E2E's current GPU fleet runs at 35-40% capacity, far below its 80% target, forcing it to take bank loans.
- Nvidia recently partnered with six financing giants—including Apollo and BlackRock—to underwrite $500 billion in loans for GPU buyers, covering depreciation.
- E2E Networks is not among the select cloud providers eligible for Nvidia's new depreciation-backstopping financing.
- E2E's own Blackwell cluster now operates as a tenant within an L&T data centre, not as a core part of L&T's AI strategy.
What Happens Next
🇮🇳 Why This Matters for India
For Bangalore-based AI startups and researchers, the L&T-Nvidia cluster promises a new large-scale compute option, potentially breaking existing cloud provider bottlenecks.
The Take
Nvidia is the explicit winner here, bypassing intermediaries and directly integrating with major Indian enterprises. E2E is left managing an underutilized, depreciating asset base and a broken growth story.
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