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L&T Acquires 21% Stake in E2E Networks for ₹1,327 Crore, Forming Strategic AI Cloud Partnership

Larsen & Toubro (L&T), a leading engineering conglomerate, announced its acquisition of a 21% stake in E2E Networks, an Indian provider specializing in artificial intelligence (AI) and cloud computing solutions. This all-cash deal, valued at ₹1,327 crore, marks L&T’s latest move in the AI cloud sector and is set to deepen the integration of advanced cloud computing capabilities across India.

This acquisition is part of a strategic collaboration that allows L&T to gain a foothold in E2E Networks’ cutting-edge AI infrastructure, which is powered by its close relationship with Nvidia. Through this alliance, L&T aims to bolster its offerings in CPU- and GPU-based cloud platforms, enabling large-scale AI and general-purpose workloads for diverse customers.

Acquisition Details and Strategic Partnership

As part of a two-part deal, L&T plans to acquire approximately 4.17 million equity shares in E2E Networks, representing a 21% ownership stake. With this acquisition, L&T will also secure the right to nominate up to two directors on E2E’s board, further embedding the strategic relationship between the two companies.

In a disclosure to the Bombay Stock Exchange (BSE), L&T highlighted E2E’s unique expertise in providing CPU- and GPU-based cloud computing platforms. These platforms empower customers to conduct large-scale AI and machine learning workloads using advanced Nvidia GPUs such as the A100, H100, and H200.

Vision for AI Cloud and Data Center Expansion in India

The partnership is anticipated to drive the development of domestically built hyperscaler cloud platforms, a step toward fostering India’s cloud computing and AI capabilities. Tarun Dua, Chairman and Managing Director of E2E Networks, emphasized that this collaboration “marks a significant milestone for the future of adoption of domestically built hyperscaler cloud platforms in India.”

Under this alliance, L&T will integrate E2E’s advanced cloud and AI cloud platforms with its established expertise in data center management. This move is expected to enhance the reach and reliability of cloud solutions for startups and established enterprises alike, providing scalable, AI-enabled platforms tailored to evolving market demands.

E2E’s Advanced Cloud Offerings: A Closer Look

E2E Networks offers state-of-the-art cloud solutions that include CPU and GPU computing platforms optimized for artificial intelligence and machine learning tasks. Key offerings include:

AI/ML Platform TIR: E2E’s proprietary platform supports seamless AI/ML workload execution.
Cloud GPUs: Featuring Nvidia’s latest A100, H100, and H200 GPUs, these cloud resources enable efficient, large-scale data processing across AI-driven applications.

This strategic acquisition by L&T aligns with the growing demand for specialized cloud services capable of handling AI workloads, positioning both L&T and E2E Networks as prominent players in India’s AI and cloud computing landscape.

Conclusion:

L&T’s acquisition of a 21% stake in E2E Networks demonstrates its commitment to enhancing India’s AI cloud infrastructure. This strategic collaboration with E2E, combined with advanced Nvidia GPUs and robust cloud capabilities, enables L&T to support startups and enterprises in scaling their AI and data-driven applications. Together, they aim to redefine the landscape of hyperscaler cloud platforms in India.