The Future of AI: India's Key Role in the Global Landscape

Published On Thu Feb 06 2025
The Future of AI: India's Key Role in the Global Landscape

OpenAI CEO Sam Altman calls India a potential AI leader, - Rediff.com

Two years after his dismissive stance on India's AI potential raised eyebrows here, OpenAI CEO Sam Altman on Wednesday gave a ringing endorsement to Artificial Intelligence momentum in the country -- and billed India as an important market not just for the new-age technology itself but for the ChatGPT creator as well.

Positive Outlook on India's AI Potential

Altman during his first visit to India in June 2023 had called India's ability to develop a foundational model similar to OpenAI's ChatGPT "totally hopeless" and a few days later had clarified that his point was about the difficulty of competing with established AI giants on cost-efficient foundational models.

Altman's visit comes days after the finance ministry directed its officers not to download or use AI tools and apps such as ChatGPT and DeepSeek in office computers and devices, saying they pose confidentiality risks to data and documents.

India's Role in the AI Revolution

Many believe that China's DeepSeek AI platform developed with $6 million investment is based on "distillation" of foundational AI models but there is no clear evidence available.

Altman emphasized India as an incredibly important market for AI in general, for OpenAI in particular. He mentioned the significant growth in user base in India and expressed his belief that India should be a leader in the AI revolution.

Cost Efficiency in AI Development

To address concerns regarding pricing, Altman projected that the cost of intelligence unit in the development of AI technology will decrease about 10 times after a year. He highlighted the progress in AI technology in India and the potential for reduced hardware requirements with advancements in AI.

Investments and Developments

OpenAI has invested billions of dollars in the development of its foundational AI models and ChatGPT applications are being widely used in India. The company has also set up The Stargate Project with a significant investment for building new AI infrastructure in the United States.

China-based DeepSeek rolled out an open-source AI platform offering similar services as ChatGPT, with claims of lower development costs. This development has caused ripple effects in the tech industry, with notable impacts on market capitalization.