Lenovo builds AI servers in make-in-India push

Chinese electronic hardware maker Lenovo Group Ltd has begun building AI servers in Puducherry, southern India, the company said as it opened an AI server-focused research and development (R&D) lab in Bengaluru this week.

The development is part of Lenovo’s plans to boost its global manufacturing and R&D capabilities, while also aligning itself with New Delhi’s ‘Make in India’ and ‘AI for All’ initiatives.

Lenovo aims to make 50,000 AI rack servers and 2,400 graphic processing unit (GPU) servers designed for resource-heavy tasks such as machine learning, annually at the plant in Puducherry.

“Lenovo will begin #AI server #manufacturing in #India to support the local and Asia Pacific demands and a new infrastructure R&D Lab in Bangalore will focus on designing, developing, and testing next-generation server platforms,” Amar Babu, president for Asia-Pacific at Lenovo, said in a post on X (formerly Twitter).

The company plans to invest $1 billion globally over the next two years researching and developing AI platforms and hardware, Babu said.

The artificial intelligence market in India is expected to grow by 35% each year to become a $22 billion industry by 2027, a joint Nasscom and Boston Consulting Group (BCG) report released in February said.

The AI hardware segment is expected to corner about 12% of the global AI market, which may triple to $380 billion in the next three years, the report added.