diff --git a/src/lightning_app/CHANGELOG.md b/src/lightning_app/CHANGELOG.md
index 305ee591b0257..4c5da2c96e2e4 100644
--- a/src/lightning_app/CHANGELOG.md
+++ b/src/lightning_app/CHANGELOG.md
@@ -40,6 +40,8 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/).
 
 - Fixed the work not stopped when successful when passed directly to the LightningApp ([#15801](https://github.com/Lightning-AI/lightning/pull/15801))
 
+- Fixed the PyTorch Inference locally on GPU ([#15813](https://github.com/Lightning-AI/lightning/pull/15813))
+
 
 ## [1.8.2] - 2022-11-17
 
diff --git a/src/lightning_app/components/serve/gradio.py b/src/lightning_app/components/serve/gradio.py
index 328e70e743b43..6e9b1d8777f67 100644
--- a/src/lightning_app/components/serve/gradio.py
+++ b/src/lightning_app/components/serve/gradio.py
@@ -1,8 +1,10 @@
 import abc
+import os
 from functools import partial
 from types import ModuleType
 from typing import Any, List, Optional
 
+from lightning_app.components.serve.python_server import _PyTorchSpawnRunExecutor, WorkRunExecutor
 from lightning_app.core.work import LightningWork
 from lightning_app.utilities.imports import _is_gradio_available, requires
 
@@ -39,6 +41,10 @@ def __init__(self, *args, **kwargs):
         assert self.inputs
         assert self.outputs
         self._model = None
+        # Note: Enable to run inference on GPUs.
+        self._run_executor_cls = (
+            WorkRunExecutor if os.getenv("LIGHTNING_CLOUD_APP_ID", None) else _PyTorchSpawnRunExecutor
+        )
 
     @property
     def model(self):
diff --git a/src/lightning_app/components/serve/python_server.py b/src/lightning_app/components/serve/python_server.py
index 731bf1c37e969..9ce1b23701059 100644
--- a/src/lightning_app/components/serve/python_server.py
+++ b/src/lightning_app/components/serve/python_server.py
@@ -1,5 +1,6 @@
 import abc
 import base64
+import os
 from pathlib import Path
 from typing import Any, Dict, Optional
 
@@ -9,12 +10,54 @@
 from pydantic import BaseModel
 from starlette.staticfiles import StaticFiles
 
+from lightning_app.core.queues import MultiProcessQueue
 from lightning_app.core.work import LightningWork
 from lightning_app.utilities.app_helpers import Logger
+from lightning_app.utilities.proxies import _proxy_setattr, unwrap, WorkRunExecutor, WorkStateObserver
 
 logger = Logger(__name__)
 
 
+class _PyTorchSpawnRunExecutor(WorkRunExecutor):
+
+    """This Executor enables to move PyTorch tensors on GPU.
+
+    Without this executor, it woud raise the following expection:
+    RuntimeError: Cannot re-initialize CUDA in forked subprocess.
+    To use CUDA with multiprocessing, you must use the 'spawn' start method
+    """
+
+    enable_start_observer: bool = False
+
+    def __call__(self, *args: Any, **kwargs: Any):
+        import torch
+
+        with self.enable_spawn():
+            queue = self.delta_queue if isinstance(self.delta_queue, MultiProcessQueue) else self.delta_queue.to_dict()
+            torch.multiprocessing.spawn(
+                self.dispatch_run,
+                args=(self.__class__, self.work, queue, args, kwargs),
+                nprocs=1,
+            )
+
+    @staticmethod
+    def dispatch_run(local_rank, cls, work, delta_queue, args, kwargs):
+        if local_rank == 0:
+            if isinstance(delta_queue, dict):
+                delta_queue = cls.process_queue(delta_queue)
+                work._request_queue = cls.process_queue(work._request_queue)
+                work._response_queue = cls.process_queue(work._response_queue)
+
+            state_observer = WorkStateObserver(work, delta_queue=delta_queue)
+            state_observer.start()
+            _proxy_setattr(work, delta_queue, state_observer)
+
+        unwrap(work.run)(*args, **kwargs)
+
+        if local_rank == 0:
+            state_observer.join(0)
+
+
 class _DefaultInputData(BaseModel):
     payload: str
 
@@ -106,6 +149,11 @@ def predict(self, request):
         self._input_type = input_type
         self._output_type = output_type
 
+        # Note: Enable to run inference on GPUs.
+        self._run_executor_cls = (
+            WorkRunExecutor if os.getenv("LIGHTNING_CLOUD_APP_ID", None) else _PyTorchSpawnRunExecutor
+        )
+
     def setup(self, *args, **kwargs) -> None:
         """This method is called before the server starts. Override this if you need to download the model or
         initialize the weights, setting up pipelines etc.