As India takes a big leap in artificial intelligence (AI), OpenAI Co-founder and CEO Sam Altman has emphasised the country’s growing importance in the AI revolution. Speaking at an event alongside Union Minister for Railways and Electronics & IT, Ashwini Vaishnaw, Altman revealed that India is OpenAI’s second largest market globally. He also encouraged India to take the lead in AI development.
India’s Rising Role in AI Innovation
Altman, who recently announced a $500 billion ‘Stargate’ project to build AI infrastructure in the US with SoftBank, Oracle, and MGX, highlighted India's potential in the AI space.
"India is a very important market for AI. It is our second biggest market. Models are still not cheap, but they are doable. India should be a leader there, of course," Altman stated.
He also addressed past remarks on India's ability to develop large language models (LLMs), clarifying that his comments were taken out of context.
Union Minister Ashwini Vaishnaw also reinforced India's commitment to AI innovation, saying that young entrepreneurs are working towards cutting costs and pushing the boundaries of AI development. He compared this effort to the success of India's Chandrayaan mission and expressed confidence in achieving similar milestones in AI.
India’s Indigenous AI Model to Launch Soon
India is on track to introduce its own secure and cost-effective AI model within the next six months. The government-backed initiative, known as the IndiaAI mission, aims to position India as a trusted hub for ethical AI solutions.
With a strong emphasis on Indian languages and domestic applications, the model is expected to support various sectors, including education and research. A high-end computing facility will power the initiative, with experts actively developing multiple foundational models.
Affordable AI: India’s Cost-Effective Computing Solution
To make AI more accessible, the government is setting up a computation facility with 10,000 GPUs, with an additional 8,693 GPUs to be added soon. This infrastructure will initially support students, researchers, and developers, making AI tools more widely available.
In a significant move, the government has decided to subsidise AI usage costs. While global models charge $2.5 to $3 per hour, India’s AI model will cost less than ₹100 per hour after a 40% government subsidy. This initiative aims to encourage more AI research and innovation within the country.
India’s AI model will have nine times the computing power of China’s DeepSeek and about two-thirds of ChatGPT’s capacity, further strengthening the nation’s AI capabilities.
With these developments, India is poised to become a key player in the global AI landscape, driving innovation and affordability in artificial intelligence.