Nvidia has proposed developing a chip jointly with India as the company seeks to leverage India’s strong semiconductor design talent and also tap this growing market, according to reports.

The proposal was made by Jensen Huang, CEO and founder of Nvidia, the world's second most valuable company, during a meeting with Prime Minister Narendra Modi in the U.S. earlier this year.

Nvidia's valuation has soared as its graphic processing unit (GPU) chips have soared as the company's graphics processing unit (GPU) chips have become an integral part of the artificial intelligence (AI) breakthroughs that are driving the tech industry.

In this development, Ashwini Vaishnaw, union minister for electronics and IT, says, “Yes, we are discussing with Nvidia the development of an AI chip; discussions are at a preliminary stage.”

According to reports, Nvidia wants to use India's huge chip-designing base to develop an India-specific chip. The government is currently thrashing out details such as the cost, benefits, and use cases of such a co-developed chip.

The jointly developed chip could be customized for Indian use cases, such as Kavach, the security system of the Indian National Railways, the person said. Indian startups, companies, and governments could also use the chip to support various emerging apps if the government makes the chip available under its AI mission.

In a short time, the Santa Clara, California-based company has surged past Microsoft and Alphabet in market capitalization: at $3.39 trillion, it is just Apple's $ 3.57 trillion, the most valuable company in the world.

Reports suggest that Huang is visiting India later this week in his annual trip to the country. During his visit in September last year, Huang met PM Modi and both discussed the potential India offers in the world of AI.