Nvidia Backs Yotta's Multi-Billion-Dollar GPU Buying Spree

Yotta Data Services is on a buying spree for Graphics Processing Units (GPUs) from Nvidia, placing massive orders that total $12 billion. The company's third order in just seven months raises questions about where it's getting the funds to finance these purchases.

The financing behind Yotta's GPU buying spree involves a complex arrangement between the company and Nvidia itself. According to reports, Nvidia has agreed to rent Yotta's unused GPUs at a set rate, guaranteeing the Indian AI cloud-service provider a steady revenue stream and making it easier for them to secure funding for their purchases.

Yotta is planning a public listing by Q1 FY28 with a target to raise $1.5 billion at a valuation of $6 billion. The funds will be used to buy more GPUs, repay debt which is expected to touch $1.4 billion by the end of FY27, and for other purposes.

Another chunk of funding will come from High Net Worth Individuals (HNIs) and family offices, with Abu Dhabi's sovereign wealth fund Mubadala also mulling a pre-IPO stake in Yotta.