Netweb Technologies Partners with NVIDIA to Drive the AI Revolution

In a groundbreaking move, Netweb Technologies India Limited has solidified its position as a manufacturing partner for NVIDIA, a global technology leader, and is set to produce a range of AI systems under its Tyrone series. The focus of this collaboration is the integration of the NVIDIA Grace CPU Superchip and GH200 Grace Hopper Superchip MGX server designs into Netweb’s cutting-edge AI systems. This strategic partnership aims to propel India’s AI capabilities to new heights, aligning with the ‘Make in India’ initiative and contributing to the growth of AI infrastructure in the region.

Netweb’s Vision for AI Excellence 

Netweb Technologies, a pioneering Indian OEM in High-end Computing Solutions (HCS), has been at the forefront of driving high-end technology products, aligning with the Make-in-India initiative. According to Sanjay Lodha, Chairman and Managing Director of Netweb, the success of generative AI and related technologies is intricately linked to robust backend infrastructure and capabilities. The collaboration with NVIDIA marks a significant step towards bringing cutting-edge, locally manufactured technologies to global standards, fostering India’s journey into the world of generative AI.

The collaboration introduces Netweb’s AI systems based on the NVIDIA MGX platform, a modular reference design that addresses complex workloads across various sectors. These AI systems are poised to cater to a spectrum of applications, including high-performance computing, data science, large language models, edge computing, enterprise AI, and design and simulation. Furthermore, the NVIDIA MGX platform facilitates the handling of diverse workloads such as AI training, inference, and 5G on a single system, ensuring seamless upgrades for upcoming hardware generations.

Game-Changing NVIDIA MGX Architecture 

Netweb’s AI system roadmap, based on the NVIDIA MGX architecture, signifies a paradigm shift in modular server design. This not only improves Return on Investment (ROI) but also streamlines development resources and reduces time to market. The architecture allows for different configurations of GPUs, CPUs, and DPUs, including x86 or Arm® CPU servers and NVIDIA OVX servers. The multiple form factors and compatibility with ongoing and upcoming generations of NVIDIA hardware position Netweb as a key player in the evolution of AI infrastructure.

Strategic Importance in the APAC Region 

Vishal Dhupar, Managing Director for South Asia at NVIDIA, emphasizes the significance of NETWEB’s Tyrone AI systems based on NVIDIA MGX in tackling the challenges faced by enterprises in building the right AI infrastructure at the right cost. The collaboration not only addresses these challenges but also provides flexibility for a variety of applications, ranging from generative AI to speech analytics, text analytics, and automation.

Fuelling India’s ‘Make in India’ Mission 

The collaboration between Netweb and NVIDIA is a significant stride towards realizing the immense potential of AI in India and the Asia-Pacific (APAC) region. By manufacturing AI systems locally, Netweb contributes to India’s ‘Make in India’ mission, fostering a robust local ecosystem to meet the escalating demands for AI and accelerated computing applications in both government and private enterprises.

Driving Growth through Innovation 

Netweb’s financial metrics for Q2 FY24 showcase robust performance, with a revenue of Rs 1,449.9 million and a strong order book of Rs 2,174 million. The company’s commitment to innovation is evident in its strategic initiatives, including the establishment of an SMT line within 6-9 months, a license agreement with Intel for Next Gen Architecture-based systems, and plans to introduce ARM-based servers optimized for newer AI workloads.

Growth Drivers and Opportunities 

The ‘Make AI in India & Make AI work for India’ initiative, the transition to 5G technology, and increasing demand for cloud-based services and network switches present significant growth opportunities for Netweb. The company’s expansion into Europe and the Middle East, along with the introduction of new product lines such as network switches and 5G ORAN appliances, underscores its commitment to staying ahead in the rapidly evolving tech landscape.

Confidence in Netweb’s Vision 

Netweb’s growth journey is further supported by key institutional shareholders, including Goldman Sachs Managed Funds, Tata Mutual Fund, and BNP Paribas Arbitrage, among others. Their confidence in Netweb’s vision reflects the company’s strategic positioning and potential for sustained growth.

According to a recent BlackRock report, the first half of 2023 showcased robust equity performance predominantly driven by mega-cap tech companies embracing AI themes. However, the report emphasizes the need for investors to broaden their horizons beyond these mega-cap players and explore opportunities across the entire AI value chain and emerging sectors of the economy. Surprisingly, the typical moderate equity portfolio, as revealed in the report, has less than 1.5% exposure to both pure-play AI and semiconductor companies, indicating an underexplored area for potential investment. The report suggests that thematic ETFs and active strategies focusing on AI alongside digital disruption could be avenues for expanding exposure.

In a transformative collaboration, Netweb Technologies and NVIDIA are propelling India’s AI capabilities through cutting-edge AI systems. This partnership, aligning with ‘Make in India,’ integrates NVIDIA’s advanced technologies into Netweb’s Tyrone series, targeting diverse applications from high-performance computing to AI training. The revolutionary NVIDIA MGX architecture, fostering modular server design, positions Netweb as a key player in AI infrastructure evolution. The recent BlackRock report emphasizes the global equity impact of AI, urging diversification beyond mega-cap tech. Netweb’s robust financials, growth initiatives, and institutional support underscore its strategic role in India’s AI revolution.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.