Who’s actually paying for Yotta, rivals’ multi-billion-dollar Nvidia orders?
The post Who’s actually paying for Yotta, rivals’ multi-billion-dollar Nvidia orders? appeared first on The Ken .
Yotta Data Services, an Indian AI cloud-service provider, is on the verge of securing multi-billion-dollar orders from Nvidia for GPUs. In late September, Yotta expressed a desire for 80,000 GPUs in two tranches, amounting to $12 billion, marking its third such order in seven months. Following February's purchase of 20,736 Blackwell Ultra chips, Yotta's GPU acquisition has intensified, with the company projected to require 50,000 Vera Rubin chips by August.
These advanced chips, built on TSMC's 3nm process nodes, represent Yotta's latest step in AI cloud technology. Despite a relatively modest $108 million in revenue for FY25 and a $1.1 billion net debt, Yotta is exploring various financing options. It has joined Nvidia's AI Compute Partnership, which involves renting unused GPUs at a set rate, thereby ensuring a revenue stream and facilitating debt repayment.
Furthermore, Yotta plans to go public by Q1 FY28, aiming to raise $1.5 billion at a valuation of $6 billion. This funding will be utilized for purchasing additional GPUs and repayment of debt, which is expected to reach $1.4 billion by the end of FY27. Other sources of funding include high-net-worth individuals, family offices, and Abu Dhabi's sovereign wealth fund Mubadala.
Additionally, data-center company AM Intelligence, spearheaded by the Greenko Group's founders, has also placed an order for 9,000 Vera Rubin chips, valued at $1.5 billion, with the funds to be sourced from Japanese bank loans.
Written by urgent.news from The Ken's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
