May 25, 2024
Nvidia Sets Sights on $200M AI Hub in Indonesia Amid Global Demand Surge

Nvidia Sets Sights on $200M AI Hub in Indonesia Amid Global Demand Surge

Nvidia, a global semiconductor giant renowned for its contributions to artificial intelligence (AI), has unveiled plans to build a cutting-edge AI centre in Indonesia in partnership with the Indonesian government and telecom provider Indosat Ooredoo Hutchison.

Strategic Partnership and Investment

Announced on April 4 by Budi Arie Setiadi, Indonesia’s communication minister, the AI centre represents a significant investment totalling $200 million.

In Surakarta city, located in the Central Java region, the centre is poised to become a pivotal hub for AI innovation and development.

Facility’s Purpose and Construction Timeline

The AI centre is slated to host either telecommunications infrastructure or serve as a human resource centre, as outlined by Setiadi.

Construction is anticipated to commence in 2024, with Surakarta Mayor Gibran Rakabuming Raka highlighting the city’s readiness in terms of human resources and 5G infrastructure as key factors in its selection.

Nvidia’s initiative in Indonesia builds upon a memorandum of understanding signed with the Indonesian government in January 2022.

Under this agreement, Nvidia pledged to train lecturers and over 20,000 university students in AI skills over five years, aiming to bolster the nation’s AI talent pool.

Surge in AI Market Growth

The announcement comes amid a significant surge in the global AI market, which nearly doubled from $134.89 billion in 2022 to $241.80 billion in 2023, according to recent data.

Nvidia’s expansion in Indonesia underscores its commitment to capitalizing on this rapid growth trajectory and cementing its presence in emerging AI markets.

Nvidia’s venture in Indonesia aligns with its broader strategy to expand its influence across the Southeast Asia region.

Notably, the company has pursued similar partnerships and investments, including collaborating with local telecom companies and educational institutions in Singapore to establish AI centres and data centres.

Global AI Initiatives by Major Tech Players

The move also mirrors a broader trend among major AI developers such as Google and Microsoft, who have been investing billions of dollars in AI initiatives worldwide.

From establishing data centres to launching training programs for local communities, these companies are actively contributing to the proliferation of AI capabilities globally.

Moreover, the race to harness advanced AI models extends beyond traditional tech players, with blockchain and cryptocurrency firms like Tether also ramping up their AI focus and recruitment efforts for top-tier AI talent.


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