The GPU Hunger Games, E3W’s Safety Crisis & More

India’s AI Boom Runs Into A Compute Crunch 

The way India buys AI compute power is being rewritten. Amid geopolitical tensions and downstream supply chain cracks, cloud providers are scrambling for next-generation AI chips. But as semiconductors become a strategic resource, who really gets the compute?

Sourcing Squeeze: Experts believe that the worst of the GPU shortage has eased, but demand is still outrunning supply. This friction is impacting the hardware that buyers can actually secure. As chipmakers focus on newer architectures, older-generation chips are becoming relatively easier to source. 

But the procurement of newer GPUs remains constrained. This has resulted in slow delivery cycles, forcing cloud platforms to make early reservations and coordinate directly with OEMs.

The Downstream Drag: The bottlenecks have also moved downstream. Cloud platforms are facing severe constraints when it comes to components like memory, networking, and power infrastructure. Then, geopolitics has made the market more unequal. Export controls, concentrated semiconductor manufacturing and the dominance of a few hyperscalers have created a tiered system in which strategic buyers are prioritised, while smaller players wait longer for delivery.

The Strategy Pivot: To buffer against supply disruptions, cloud computing players are treating compute infrastructure as a strategic utility. Providers are moving to long-term demand forecasting, reserving fleet capacity years in advance and blending legacy hardware with new incoming GPUs to manage workloads.

Doing More With Less: The resource scarcity is also changing consumer behaviour on the ground. AI startups are increasingly scheduling training to off-peak windows, inference is becoming the main workload and software optimisation is turning into a competitive moat. Engineering teams are also deploying hybrid models, multi-cloud sourcing and workload routing to keep only the most compute-heavy tasks on premium chips. 

As the country’s AI ambitions try to keep pace with compute deficit, how is India’s GPU market being rewired? Let’s find out…

From The Editor’s Desk

The EV Battery Jammer Saga

• Last week, the Centre directed Google and Apple to remove at least seven generic battery management system apps from their app stores. The action followed public disruption caused by users exploiting weak local access controls to remotely disable EVs.
• While researchers had documented these identical authentication bypasses on platforms like GitHub several years ago, manufacturing pipelines continued to distribute the white-labeled components without updated access-control protocols.
• The firmware vulnerabilities directly threaten India’s unorganised electric three-wheeler ecosystem. An estimated 20 Lakh e-rickshaws are currently on the road, with only about 50% formally registered. 

Weekly Startup Funding Tanks

• Indian startups cumulatively raised $104.6 Mn across 21 deals last week, marking a steep 91% decline from the $1.1 Bn raised via 16 deals in the prior week. The Indus Valley and Incuzpace took the biggest cheques home at $17 Mn and $16 Mn, respectively. 
• Ecommerce topped the deal count and funding charts, commanding $29.6 Mn across four transactions. Meanwhile, the AI segment also logged four deals, bagging $2 Mn in total capital.
• Seed-stage startups captured $11.1 Mn across nine deals, down 69% week-on-week from the prior week’s volume. Institutional heavyweights like Accel and Bajaj Finserv Ventures emerged as most active investors last week, backing one startup each.

A Bullish Week For Startup Stocks

• Driven by positive brokerage commentaries and strong fundamentals, 39 out of the 57 listed startups under Inc42’s coverage gained in the range of 0.03% to nearly 20%. The remaining 18 stocks declined between 0.01% to close to 9%. 
• With Turtlemint expanding the listed startup pool to 58, the cumulative market capitalisation of the new-age tech stocks climbed to $139.29 Bn last week, up from $135.92 Bn the preceding week.
• Investors will closely monitor FPI flows, crude oil prices, and developments around global interest rates in the coming week. Domestic macroeconomic indicators and geopolitical developments in West Asia will also remain key triggers. 

Telegram Under Scrutiny Again

• The messaging app has now received another notice from the Centre over alleged dissemination of pirated films and OTT content. The IT ministry has directed the platform to submit an Action Taken Report within 15 days on the matter. 
• The ministry has also sought details regarding the platform’s grievance redressal mechanism for producers, OTT networks and law enforcement agencies. It has also warned of legal action in case pirated content continues to be available on the app.
• This follows MeitY recently temporarily blocking Telegram over the alleged use of the platform for selling fake access to NEET exam papers, spreading misinformation and fabricating “paper leak” evidence.

Tracking Startups’ FY26 Show

• Of the 44 new-age tech companies that have released their FY26 financials, 33 reported profits, totalling ₹9,346.5 Cr. The remaining 11 startups posted a cumulative net loss of ₹14,356.5 Cr, highlighting that unit economics remain a work in progress.
• However, these 44 startups cumulatively generated ₹2.25 Lakh Cr in operating revenue in FY26, marking a sharp 52% expansion from ₹1.48 Lakh Cr in FY25. 
• While Groww and Info Edge together contributed the biggest chunk to the startup profit pool at 3,846 Cr, Swiggy and Zepto alone accounted for 70% (₹10,059 Cr) of the total loss incurred by the startups that have released their FY26 numbers so far.

Inc42 Markets

Inc42 Startup Spotlight

How Gimi Michi Is Bringing Affordable Korean Food To India

Despite the rise of Korean pop culture across India, access to authentic Korean food has remained out of reach for many. Most offerings are confined to expensive, imported brands or premium stores, leaving a big gap for mainstream consumers. Gimi Michi wants to change this. 

Democratising K-Food: Founded in 2024, Gimi Michi is building a dedicated Korean FMCG brand designed specifically for the Indian masses. By partnering directly with trusted manufacturers to develop local production pipelines, the startup bypasses costly import logistics to deliver authentic flavours at accessible consumer price points.

A Tailored Portfolio: The brand currently operates with a diverse portfolio of five instant ramen variations, including Crazy Cheesy, Korean Kimchi, Hot Chicken, and others. To appeal to experiential Gen Z and Gen Alpha buyers, Gimi Michi also offers curated experiential boxes packed with themed add-ons like chopsticks, stickers, and a dedicated bowl.

Growing Steadily: Tapping into quick commerce platforms like Zepto and Flipkart Minutes, the startup claims to have clocked an annualised revenue run rate of ₹16.8 Cr in FY26 while sustaining a rapid 60% month-on-month growth velocity. With the broader Indian instant ramen market projected to exceed a $1 Bn over the next decade, can Gimi Michi establish itself as a homegrown powerhouse for Korean flavours?

Infographic Of The Day

Everyone’s talking about Kunal Shah joining Meta. But before becoming WhatsApp’s global head, he built one of India’s most influential angel portfolios and backed 309 startups across sectors. Here is all about it…

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