Yotta Data Services ordered 80,000 Nvidia GPUs for $12 billion in September, its third mega-order in seven months. This comes as the AI cloud provider reports $108 million in revenue and carries $1.1 billion in net debt. Nvidia itself is guaranteeing Yotta's financing by agreeing to rent unused GPUs at a fixed rate.
How We Got Here
Yotta's GPU buying spree began in February with 20,736 Blackwell Ultra chips, growing to 50,000 Vera Rubin chips by August. Its plan includes a public listing by Q1 FY28 to raise $1.5 billion, partly to finance further GPU purchases and repay expected $1.4 billion debt.
The Numbers
- Nvidia's AI Compute Partnership effectively guarantees Yotta revenue, making it easier for Yotta to secure financing for GPU purchases.
- Yotta plans to secure ~$150 million from HNIs and family offices, with Abu Dhabi's Mubadala sovereign wealth fund mulling a pre-IPO stake.
- Competitor AM Intelligence, founded by Greenko Group's founders, also ordered 9,000 Vera Rubin chips for $1.5 billion in September.
- AM Intelligence's $1.5 billion GPU order, equal to its entire land and construction budget, is expected to be funded by Japanese bank loans.
- Indian financiers are hesitant to lend against GPUs, preferring land and power infrastructure, leaving foreign backers to fund the capital-intensive AI compute build-out.
What Happens Next
🇮🇳 Why This Matters for India
For founders and engineers building AI-first products in Bangalore and Hyderabad, reliance on foreign-backed cloud infrastructure could mean long-term pricing and vendor lock-in implications.
The Take
Indian banks are missing a massive opportunity by shying away from lending against GPUs, ceding high-growth AI compute infrastructure to foreign capital. This will cost them substantial future revenues as the ecosystem matures, putting them years behind global financiers.
Source:
The Ken ↗