Yotta Data Services Plans IPO 'Very Soon' to Meet AI Demand
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Yotta Data Services Pvt, operator of India's largest Nvidia chip cluster, is in talks to list on capital markets 'very soon' to fund expansion amid surging AI demand. Chairman Darshan Hiranandani told Bloomberg TV the company is 'underway in talks' and has engaged banks for an IPO that could raise up to $900 million. The company expects to reach 400 megawatts of capacity within 12 to 18 months.
Key Facts
- Yotta Data Services operates India's largest cluster of Nvidia Corp. chips.
- The company has engaged banks for an initial public offering that could raise as much as $900 million.
- Chief Executive Officer Sunil Gupta told Dow Jones that Yotta is targeting a valuation of as much as $6 billion.
- Yotta expects to hit 400 megawatts of capacity over the next 12 to 18 months.
- Chairman Darshan Hiranandani expects the dollar-denominated share of sales to rise to 80% next year.
IPO Plans
Yotta Data Services is in talks to tap capital markets 'very soon' to meet surging demand for AI services, according to Chairman Darshan Hiranandani. Hiranandani told Bloomberg TV on Friday that the company is 'underway in talks' and seeking to list, declining to comment on valuation or the amount to be raised. Yotta has engaged banks for an initial public offering that could raise as much as $900 million, Bloomberg previously reported. Chief Executive Officer Sunil Gupta told Dow Jones that the company is targeting a valuation of as much as $6 billion.
Capacity Expansion
Yotta, like its global rivals, is ramping up spending to expand its computational resources. The company expects to hit 400 megawatts of capacity over the next 12 to 18 months and has the ability to tap $20 billion worth of graphics processing units, Hiranandani said. Data centers need to deploy huge numbers of advanced processors to handle calculations simultaneously to train or run AI models. Hiranandani said demand is something the company can't keep up with, adding that it is more about rolling out infrastructure and getting deliveries on time.
Market Position
India has over a billion internet users and is expected to grow into one of the largest markets for cloud computing in the decades ahead. The country's digitally savvy population and government support for tech initiatives make it a key battleground for Amazon.com Inc., Microsoft Corp., Alphabet Inc.'s Google and Meta Platforms Inc. Yotta began work on an Nvidia cloud cluster in early 2024, helping it capture global demand. Hiranandani expects the dollar-denominated share of the company's sales to rise to 80% next year, compared with about 80% of revenue earned in Indian rupees and 20% from dollar-paying clients last year.
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Yotta Data Services Plans IPO 'Very Soon' to Meet AI Demand
