en.Wedoany.com Reported - Amol Phadke, Chief Transformation Officer at Tech Mahindra, stated that GPU-as-a-Service (GPUaaS) holds long-term potential for telecom operators, but industry interest remains limited due to financial risks and lack of demand visibility. In an interview with ETDatacenters, he pointed out that as artificial intelligence (AI) demand shifts toward distributed computing and edge infrastructure, telecom operators possess inherent advantages in network proximity and enterprise relationships, giving GPUaaS long-term potential. However, the upfront investment requirements for data center infrastructure (power and Graphics Processing Units GPUs), combined with the relatively low-margin nature of the business, increase financial risks for operators. Furthermore, hyperscalers dominate the market, while telecom operators face capability gaps in operating AI-native platforms at scale.
Telecom companies have recently ventured into the GPUaaS space through partnerships with semiconductor firms like Nvidia, generating additional revenue by monetizing data center assets, such as providing GPU capacity to government and private sectors. In India, local companies including Tata Communications, Jio Platforms, CtrlS Datacenters, and Yotta Data Services are already operating GPUaaS under the IndiaAI Mission. Globally, Deutsche Telekom, e&, Singtel, SK Telecom, and others have partnered with Nvidia, OpenAI, and other AI companies to offer GPU services. In contrast, Sunil Mittal-led Bharti Airtel has stated its focus is on expanding its data center business and is not inclined to offer GPUaaS.
According to research by Grand View Research, the global GPUaaS market was valued at approximately $4.37 billion by the end of 2025 and is projected to grow at a compound annual growth rate (CAGR) of 16% to $14.45 billion by 2033. The growth in data volume and the need for advanced data analytics are the primary drivers of demand for GPU acceleration, particularly in the GPUaaS sector. Phadke stated that Tech Mahindra is helping telecom operators build AI-native architectures, unify data foundations, embed intelligence into operational processes, and create scalable, ecosystem-driven business models to unlock value. However, due to legacy architectures, fragmented data environments, and integration complexities, telecom operators still face challenges in scaling pilot projects, leading to uneven adoption, with stronger momentum in areas like customer operations and marketing, while progress in core network and IT domains remains relatively slower.
The communications business is the largest vertical for the Mohit Joshi-led company, contributing approximately 33% of revenue and achieving a 5.6% annual growth rate in fiscal year 2026 (FY26). The business is diversified across a global operator base, covering IT, network services, business process services (BPS), and platforms. Phadke stated that their focus is on helping telecom providers transform from connectivity providers into intelligent, AI-native enterprises, underpinned by deep domain expertise and a strong global ecosystem.
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