Zoho’s Vembu urges India to skip GPU race, build foundational tech

Zoho co-founder Sridhar Vembu has called on India to prioritise foundational infrastructure and home-grown technologies over heavy spending on GPUs, arguing that the latter would only deepen dependence on foreign suppliers. The remarks, reported by YourStory, come as India prepares to deploy a $25 billion deep-tech fund aimed at closing the gap with the U.S. and China in semiconductors, AI, and space technology.

Vembu’s position contrasts with the government’s recent commitments, which we covered last month as part of a broader push to invest in advanced computing and AI startups. While the $25 billion allocation signals ambition, his argument centres on long-term sovereignty: building durable capabilities rather than competing in a hardware race dominated by a handful of global players.

The tension reflects a wider debate in India’s deep-tech ecosystem. Earlier this year, we noted funding gaps in space-tech startups despite growing interest, suggesting that capital alone may not address structural challenges. Vembu’s critique extends this concern to AI, where India’s strategy has so far emphasised access to foreign GPUs rather than developing alternatives.

What happens next will depend on how policymakers balance these competing visions. If Vembu’s approach gains traction, it could shift focus toward semiconductor fabrication, open-source hardware, or edge-computing solutions—areas where India has made tentative progress but lacks scale. For now, the $25 billion fund remains the clearest signal of intent, even if its execution is still untested.

Sources: yourstory.com