Why India Must Prioritize the Development of Native AI Models Post-DeepSeek | Darshan Hiranandani

The global AI landscape has been forever altered by the sudden rise of DeepSeek, a low-cost, high-performance AI model developed by China. With its affordability and impressive capabilities, DeepSeek has posed a direct challenge to AI leaders like OpenAI and Google. Now, India finds itself at a critical crossroads, where the need for homegrown AI models has never been more pressing.

The disruption caused by DeepSeek has sparked a national conversation about India’s AI future. As Rushabh Shah, angel investor and founder of Bolstart, pointed out, India’s traditional approach to decision-making—moving slowly and carefully—could hinder its ability to keep up with the fast-paced AI revolution. The concept of “chai” meetings, where multiple discussions are held before decisions are made, may need to be reconsidered if India hopes to stay ahead in the AI race.

Rajeev Chandrasekhar, former minister of electronics and IT, emphasized that DeepSeek proves that computing power alone cannot guarantee a lasting competitive advantage. The real key to success lies in developing innovative AI solutions. India, with its vast population, technological expertise, and growing AI ecosystem, is well-positioned to lead the way in creating LLMs tailored to Indian languages and markets. However, this requires a concerted effort to invest in research and development, alongside institutional and cultural shifts.

Ajai Chowdhary, Chairman of the National Quantum Mission, highlighted the importance of viewing national data as a strategic resource. India must invest in AI research and development and move quickly to capitalize on its strengths. Despite receiving Rs 1 lakh crore in funding for R&D in the last budget, Chowdhary noted that execution has been lacking, and more needs to be done to create an environment that fosters innovation.

Darshan Hiranandani, CEO of Hiranandani Group, also stressed the need for a change in mindset. Despite having access to world-class technology, including H100 GPUs, India has yet to build an ecosystem that fosters the creation of innovative AI models. The success of DeepSeek proves that high-quality models can be built at a fraction of the cost previously thought necessary, opening up new opportunities for India to compete in the AI space.

Srikanth Velamakanni, CEO of Fractal, called for immediate government action to ensure that India can capitalize on the existing infrastructure and build the AI solutions of the future. With the right investments and a bold approach, India can lead the charge in developing AI models that cater to its unique linguistic and cultural needs.

As DeepSeek’s success continues to reverberate through the AI industry, India must seize the opportunity to create its own AI models. With the right investments in research, innovation, and infrastructure, India can position itself as a global leader in AI and ensure its place in the AI-driven future.