L&T’s Rs 15,000 cr bet with Nvidia is a gut punch to a struggling E2E
The post L&T’s Rs 15,000 cr bet with Nvidia is a gut punch to a struggling E2E appeared first on The Ken .
In early August, Larsen & Toubro (L&T) entered into a partnership with Together AI to construct a 10,000-GPU Nvidia cluster in Chennai, valued at up to Rs 15,000 crore. However, E2E Networks, the Indian GPU cloud provider that L&T had previously acquired a 21% stake in for Rs 1,079 crore in 2024, was not involved in the deal. A L&T executive explained that they initially partnered with E2E due to its cloud and AI layer, which complemented their expertise in physical infrastructure.
The real value of a GPU cloud lies in the software, orchestration layer, guaranteed uptime, and security that enhance the accessibility of Nvidia's chips. Nvidia, aware of this challenge, recently partnered with several major financial institutions to provide up to $500 billion in loans for companies purchasing its GPUs. This move aims to mitigate the issue of GPU depreciation, a significant concern in the cloud sector.
E2E's capacity utilization had remained at 35-40% against its target of 80%. Recognizing this, L&T decided to shift all its new AI infrastructure to its own data centers, with E2E's Blackwell cluster now functioning as a tenant.
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