India's AI firms hit by severe GPU shortages despite ample funding

Funding streams for Indian artificial-intelligence firms are robust, yet the sector is bottlenecked by a shortage of GPUs, high-bandwidth memory and reliable power. Start-ups often get free cloud credits, but once they order physical GPUs, deliveries can take three to four months, causing entire engineering teams to lose a quarter of productivity. Companies such as Juspay and robotics venture CynLr cite the same delays, with Juspay’s COO Sheetal Lalwani noting a net loss after heavy AI-infrastructure spending.

Venture investors like Rahul Agarwalla and Ashish Taneja warn that securing capacity in advance is difficult for early-stage firms. Memory supply from SK hynix, Samsung and Micron is already fully committed for 2026, and data-centre power is increasingly locked by large players. The government’s IndiaAI Mission has made over 38,000 GPUs available, but specialized workloads and security-sensitive firms need dedicated rack space that the pool does not provide.