DeepSeek threat: Are Indian GPUs ready?; Solarium takes to stock markets

Hello,

Trump’s troubling tariffs take their toll.

As the US president affronts an economic escalation with China, Canada, and Mexico, India too is feeling the pinch. The Indian stock markets plunged, wiping off around Rs 5 lakh crore from investors’ pockets amid uncertainty over the fallout of a potential trade war. The rupee also slid to its record-lowest level. 

Trump’s ‘America-first’ policies could disrupt global markets and destabilise international relations, noted Zerodha Founder and CEO Nikhil Kamath, highlighting the disproportionate influence of the ‘US empire’.

But a golden opportunity may have fallen into India’s lap.

India could end up benefitting from the trade war in sectors such as gems and jewellery as the US imports 21% of its precious stones from Canada and Mexico, which would be now subject to a 25% tariff. 

India could similarly benefit in iron and steel production, as it only has a 6.8% share in US imports compared to 64.4% for Canada and Mexico.

The textile sector is also set for disruption as the US—the largest importer of apparel—imports one-fifth of its clothes from China. Key measures in Budget 2025 like the Mission for Cotton Productivity, enhanced credit support for MSMEs, and duty restructuring on textiles may help India to fill the gap.

ICYMI: Here’s how the Budget would affect the Indian startup ecosystem.

In today’s newsletter, we will talk about 

• Indian GPUs in the AI race
• Solarium takes to stock markets
• Helping lead a life with dignity

Here’s your trivia for today: What was the world’s busiest international airline route in 2024?

AI

Indian GPUs in the AI race

In a major step towards achieving its AI ambitions, Union Minister of Electronics and IT Ashwini Vaishnaw on January 30 announced plans to develop India’s own foundational model. This bold plan leans heavily on computing infrastructure. 

India claims it has already exceeded its original target of procuring 10,000 GPUs through public-private deals, stockpiling a total of 18,600 GPUs. So is that all it takes to thrust India into the AI limelight? Not quite. 

Breakthrough needed:

• A S Rajgopal, CEO of NxtGen, a data centre solutions provider, points out that the country’s existing data centre infrastructure isn’t equipped to handle the intense computational requirements of large-scale AI training.
• AI workloads demand high-density racks (50kW+ per rack). However, most existing facilities are not designed to handle these loads, necessitating liquid cooling or immersion cooling solutions to manage heat efficiently.
• Bruce Keith, Co-founder and CEO of InvestorAi, notes that low-cost DeepSeek has given nations lacking high-end GPU infrastructure a major opportunity to leapfrog. 

Startup

Solarium takes to stock markets

With the growing demand for renewable energy, Solarium Green Energy taps into the opportunity to harness the abundant sunlight in the country.  

The bootstrapped company is all set to list on public bourses. Its IPO will open on Thursday, February 6, with anchor bidding starting on February 5. It is offering nearly 55 lakh equity shares with a face value of Rs 10 each, at an issue price range of Rs 181 - Rs 191 per share.

Harnessing the Sun:

• Solarium intends to use the proceeds from the IPO to meet its working capital requirements and general corporate purposes.
• It has partnered with several OEMs, including Navitas Solar and Citizen Solar, to procure solar panels. However, if a customer has a specific demand for an OEM manufacturer, the company buys in bulk and installs the panels. 
• In 2024, Solarium clocked Rs 177 crore in revenue, with a profit after tax of Rs 15.59 crore. 

Social Impact

Helping lead a life with dignity

A cooperative society owned by waste pickers, SWaCH provides daily doorstep waste collection services to more than 40 lakh residents of Pune. It is a collective of 3,900+ waste pickers who also participate in the governance of the cooperative. 

It emerged from Kagad Kach Patra Kashtakari Panchayat, a trade union of waste pickers and itinerant waste buyers in Pune and Pimpri Chinchwad, formed in 1993. 

Key takeaways:

• SWaCH has enabled waste pickers to build a long-lasting and direct partnership with Pune Municipal Corporation for doorstep collection of waste. 
• Its waste pickers recycle 200 tonnes of dry waste each day. They are compensated for their work by citizens through user fees and the sale of recyclables. For 3-5 hours of work, a waste picker earns a total of Rs 16,000 to 20,000 monthly. 
• Waste pickers have played an ‘information, engagement, communication’ role, leading to 98% source segregation in Pune. Over the years, the model has evolved from waste collection into city-level zero-waste solutions.

News & updates

• Slump: The Indian rupee declined to 87.28 per US dollar before closing at 87.19, down by nearly 0.7%, its biggest single-day percentage loss since January 13 after US President Donald Trump slapped tariffs on imports from Canada, Mexico, and China, stoking fears of a trade war that rattled global financial markets.
• Expand: India has eased restrictions on its Aadhaar authentication service to let businesses use the verification system to authenticate their customers. The update has raised privacy concerns as the government is yet to define the guardrails it would consider to avoid misuse of individuals’ biometric IDs.
• New agent: OpenAI is announcing a new AI agent called Deep Research, designed to help people conduct in-depth, complex research using ChatGPT. This new capability is designed for “people who do intensive knowledge work in areas like finance, science, policy, and engineering and need thorough, precise, and reliable research.”

What was the world's busiest international airline route in 2024?

Answer: Hong Kong to Taipei. This route had 6.78 million seats available in 2024. 

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