HIGHLIGHTS

OpenAI CEO Sam Altman announces that the company’s user base in India has seen a remarkable threefold increase, establishing it as OpenAI’s second-largest market globally.

Altman addresses his previous comments regarding India’s AI development, advocating for the importance of smaller, reasoning-based AI models in enhancing creativity.

Indian IT Minister Ashwini Vaishnaw outlines plans to roll out a domestically-developed AI model, supported by a government-subsidized computational facility.

In a recent fireside chat with India’s IT Minister Ashwini Vaishnaw, Sam Altman, CEO of OpenAI, commended India’s growing influence in the realm of artificial intelligence. He pinpointed India as a pivotal market in the AI landscape, revealing a significant tripling of OpenAI’s user base over the past year, making it the company’s second-largest market globally.

Altman elaborated on India’s commitment to developing AI across various levels, from hardware such as chips to sophisticated models, highlighting numerous impressive AI applications emerging within the country. “India is an incredibly important market for AI in general and for OpenAI in particular,” he stated, as reported by PTI. “The number of users here has tripled over the last year, and it’s remarkable to witness the innovations that people in India are crafting with AI across the entire spectrum—ranging from chips to applications.”

Moreover, Altman expressed optimism for India’s potential role in leading the AI revolution. “It’s truly inspiring to see India embracing this technology and building a comprehensive stack that resonates on a global scale,” he remarked, underlining the nation’s promise in AI development.

This visit marks Altman’s second tour of India in two years and comes at a critical juncture for OpenAI amid increasing competition from Chinese AI firms like DeepSeek. Additionally, the trip may also serve a strategic purpose, considering the ongoing legal challenges OpenAI is encountering in India, including issues related to copyright.

In light of previous remarks he made about India’s AI ambitions, Altman defended his past comments, asserting that they were misconstrued. He clarified that his earlier statement suggesting India should avoid trying to build its own AI models was taken out of context. “When I discussed the challenges of developing foundational AI models a few years ago, it was meant to reflect the context of that time regarding AI scalability. It is true that developing such models can be costly, but recent advancements in AI model distillation offer new opportunities,” Altman explained.

He further added, “Although creating small and reasoning-based AI models is still a significant investment, it is increasingly feasible. This evolution could lead to an explosion of creativity, and I firmly believe India has the potential to play a leadership role in this space.”

On the governmental side, IT Minister Vaishnaw affirmed India’s commitment to enhancing its AI capabilities by stating that a homegrown AI model will be introduced within the next ten months. This initiative will be supported by a massive computational facility comprising 18,693 GPUs. The government’s objective is to democratize AI access by making it more affordable; thus, usage costs are projected to be below Rs 100 per hour thanks to a significant 40% government subsidy.

This strategic collaboration between OpenAI and the Indian government reflects a mutual recognition of the importance of AI technology. By fostering innovative ecosystems and ensuring accessibility, India and OpenAI are well-positioned to thrive in the burgeoning domain of artificial intelligence. The forward-looking vision shared between industry leaders like Altman and government officials like Vaishnaw could well pave the way for India to emerge as a formidable player in the global AI arena.