E2E's fleet ran at 35-40% capacity against an 80% target. L&T moved AI compute in-house via Vyoma, and the former partner is now a tenant.
Larsen & Toubro signed a deal in early August with US AI cloud platform Together AI to build a 10,000-GPU Nvidia cluster in Chennai worth up to Rs 15,000 crore. E2E Networks, the listed Indian cloud provider in which L&T bought a 21% stake in 2024 for Rs 1,079 crore, was nowhere near the deal.
The partnership with E2E was supposed to be L&T's route into AI compute.
The platform layer now comes from Together AI. None of L&T's new AI infrastructure runs through E2E, the executive said. E2E's own Blackwell cluster sits inside an L&T data centre as a tenant rather than the centrepiece of the conglomerate's AI bet.
GPU economics explain the shift. Chips cost a fortune and go obsolete in months. A GPU cloud is a gamble that the operator earns back the cost of a chip before a newer generation makes it worthless. In the same week L&T signed the Together AI deal, Nvidia lined up six major financing companies to underwrite up to $500 billion in loans for companies buying its GPUs. Nvidia has effectively become a bank that covers part of the loss when those chips depreciate.
E2E's fleet shows the risk in practice. Its GPUs have been running at 35–40% of capacity against an internal target of 80%. L&T did not wait for those numbers to turn around.
In the original model, the executive said, E2E "would bring the compute; L&T would build the buildings."
Through its data-centre unit Vyoma, L&T now appears to be bringing more of the compute itself. The easier job for a GPU cloud is connecting clients to Nvidia's chips. The real sell is the software, orchestration layer, uptime guarantees and security that make access worth paying for. Together AI now supplies that layer for the Chennai cluster. The original deal assumed E2E's platform was the hard part to replicate; the new deal sources that layer from elsewhere.
The kind of platform L&T bought into now anchors the Chennai build-out. It comes from Together AI, not from E2E. L&T still holds its 21% stake, acquired for a platform that now comes from a different supplier.
Nvidia, whose chips anchor both the new cluster and E2E's Blackwell fleet, carries an Alpha Score of 79 out of 100, a Strong rating. Shares trade at $225.16, down 0.06% on the day. The NVDA stock page and NVIDIA profile carry the full breakdown.
The senior L&T executive summed up the new arrangement. "The direction has changed," he said.
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