China's DeepSeek has disrupted the AI industry by significantly reducing the cost of developing generative AI applications, two years after ChatGPT's debut.
By Aniket Chakraborty
Feb 20, 2025
Despite having 200 startups in generative AI, India lags behind in creating its own foundational language model for powering chatbots and similar applications.
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OpenAI CEO Sam Altman has changed his stance on India, now recognizing it as their second-largest market by users and advocating for India's leadership in AI.
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While India ranks in the top 5 globally on Stanford's AI Vibrancy Index, it received less than 0.5% of global AI patents compared to China's 60% and US's 20%.
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India's state-funded AI mission of $1 billion pales in comparison to US's $500 billion Stargate plan and China's $137 billion AI hub initiative.
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Despite contributing 15% of the world's AI talent, India faces a significant brain drain as more professionals choose to leave the country.
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India's lack of high-quality datasets in regional languages poses a major challenge for AI development, given the country's linguistic diversity.
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Bengaluru's $200 billion outsourcing industry missed the opportunity to lead India's AI ambitions, focusing instead on service-based work.
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Experts suggest India could utilize open-source platforms like DeepSeek to advance its AI capabilities while working towards developing its own foundational model.
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India needs to boost its computational power and semiconductor manufacturing capabilities to effectively run AI models and reduce import dependencies.