L&T lands $1.5 billion order to build Together AI factory in Chennai

Larsen & Toubro (L&T) has secured an order worth as much as ₹15,000 crore (about $1.57 billion) from US cloud company Together AI to deploy a large Nvidia powered AI computing facility in Chennai, marking the engineering group’s entry into the AI factory business.

The order, won by L&T’s AI infrastructure subsidiary LTN Compute, is valued at between ₹10,000 crore and ₹15,000 crore, or about $1.05 billion to $1.57 billion. L&T classifies contracts in that range as “mega” orders.

The facility will be built around 10,000 Nvidia B300 GPUs and hosted at the Chennai data center campus of Vyoma.AI, L&T’s AI cloud and data center business. Together AI will use the infrastructure for its cloud platform, including large scale AI training, fine tuning and inference.

L&T described it as India’s largest single cluster AI infrastructure deployment. Nvidia’s B300 is one of its newer Blackwell Ultra accelerators, designed for demanding AI workloads, particularly inference.

The size of the order also shows how quickly AI computing is becoming a new infrastructure business in India. What used to be largely a contest among cloud providers and data center operators is drawing in engineering groups with the land, power and construction capability needed to run clusters containing thousands of high end chips.

For L&T, the Together AI contract follows a broader push announced with Nvidia in February to build gigawatt scale AI infrastructure in India. That plan includes expanding GPU capacity at its Chennai campus and developing another data center in Mumbai.

The Chennai campus is being developed as a gigawatt scale site. Its first phase is designed for 250 megawatts, with 150 MVA of power infrastructure ready, giving L&T room to add more AI computing capacity beyond the Together AI deployment.

“Artificial Intelligence is becoming foundational to every industry and AI factories will power this transformation,” L&T chairman and managing director S.N. Subrahmanyan said. He called the Together AI deployment a significant step in the company’s plan to build large scale AI infrastructure in India.

Together AI provides cloud computing infrastructure, AI models and developer tools to companies building generative AI applications. Chief executive Vipul Ved Prakash said expanding access to AI would require a huge global infrastructure buildout.

The deal gives L&T a sizeable customer for that infrastructure before much of the broader capacity it has announced is built out. AI data centers are expensive to construct and power, and securing customers willing to commit to thousands of GPUs can help take some of the risk out of adding capacity ahead of demand.

India has been pushing to expand domestic AI computing capacity through the IndiaAI Mission, while private operators including Yotta, E2E Networks and L&T are building clusters using Nvidia’s latest chips.

Nvidia said in February that Yotta was developing infrastructure powered by more than 20,000 Blackwell Ultra GPUs, while L&T was working toward gigawatt scale AI factory capacity.