AI Development – CTRSpace

The world of Artificial Intelligence (AI) is evolving rapidly, with China and the US leading the way in developing powerful AI models. Recently, China’s DeepSeek stunned the tech industry by dramatically reducing the cost of building generative AI applications. Meanwhile, India is still playing catch-up in developing its foundational AI model.

The Indian government, however, remains confident. It has announced plans to provide thousands of high-end chips to startups, universities, and researchers, aiming to develop an AI model within 10 months. But with China and the US already years ahead, the question remains: Can India close the gap in time?

Global Tech Giants Bet on India’s AI Future

India’s AI potential is not going unnoticed. OpenAI CEO Sam Altman, who was once skeptical about India’s AI ambitions, now acknowledges the country’s capabilities, stating:

“India should be playing a leading role in the AI revolution.”

India is now OpenAI’s second-largest market by users, highlighting a rapid adoption of AI-driven tools.

Tech giants are also stepping in with major investments:

Microsoft has committed $3 billion for cloud and AI infrastructure in India.
Nvidia’s CEO Jensen Huang praised India’s technical talent, calling it key to unlocking AI’s full potential.

With over 200 AI startups, India has an active startup ecosystem working on generative AI. But despite this entrepreneurial energy, experts say India is still far behind in critical areas.

Why Is India Lagging Behind?

Limited AI Funding

While India has announced a $1 billion AI mission, this amount pales in comparison to the $500 billion investment the US has allocated for AI infrastructure (Stargate Project) and $137 billion by China.

Technology analyst Prasanto Roy points out that China and the US have a “four to five-year head-start”, thanks to massive funding in AI research, academia, and military applications.

Lack of India-Specific AI Datasets

A major roadblock for India is the lack of high-quality datasets for training AI models in local languages like Hindi, Marathi, Tamil, and Bengali. Without strong datasets, creating an India-first AI model remains a challenge.

Talent Drain & Weak Research Infrastructure

India has 15% of the world’s AI workforce, but many top Indian AI experts are moving abroad due to better research opportunities. AI consultant Jaspreet Bindra highlights a key issue:
“Foundational AI innovations typically come from deep R&D in universities and corporate research labs.”

Unlike China and the US, India’s academic institutions and corporate research labs have not yet produced groundbreaking AI innovations.

IT Sector Focused on Services, Not AI Development

India’s $200 billion IT outsourcing industry, centred in Bengaluru, employs millions of coders. However, IT companies have traditionally focused on service-based projects rather than foundational AI research.

As Prasanto Roy points out:
“It’s a huge gap which they left to the startups to fill.”

While startups are trying to bridge this gap, experts question whether they have the resources to match China’s and the US’s AI advancements.

India’s Path Forward: Can It Still Catch Up?

Leveraging Open-Source AI Models

Instead of building AI models from scratch, India can modify and improve existing open-source models like DeepSeek.

AI entrepreneur Bhavish Aggarwal, founder of Krutrim, recently wrote on X:
“India can continue to build and tweak applications upon existing open-source platforms like DeepSeek to leapfrog our own AI progress.”

Investing in Semiconductor Manufacturing

AI models require huge computational power, which means India must invest in semiconductor manufacturing. Currently, India depends on imports for AI chips, which increases costs and delays AI research.

Government-Industry Collaboration

Experts say that India’s success in digital payments through UPI (Unified Payments Interface) was possible because of strong government-industry-academia collaboration. A similar strategy is needed for AI, ensuring research, funding, and policy support AI breakthroughs.

Jaspreet Bindra warns that without sustained funding, India’s 10-month AI model deadline may not be realistic, stating:
“Despite what has been heard about DeepSeek developing a model with $5.6 million, there was much more capital behind it.”

The Race Is On, But India Must Act Fast

India has the talent, market size, and growing investment interest. But to truly compete with the US and China, it must address funding gaps, invest in research, and build AI infrastructure.

Experts agree that the next few years will determine whether India will emerge as an AI leader or continue to rely on foreign AI technology.

The world keeps fast-forwarding in the AI race, making it undeniably evident that whoever leads AI will lead the future. The real conflict lies when the algorithms are being subtly engineered to outthink humans, it is not just who produces the smartest machine that counts, rather it is who ensures that those digital minds fit into the world of democratic ideals. UK’s Technology Secretary, Peter Kyle argued that leadership in artificial intelligence must remain within the “western, liberal, democratic” nations, most especially against the backdrop of the increasing global race in the use of AI technologies. Speaking ahead of a global summit on artificial intelligence on Sunday in Paris, Kyle seemed to refer to the importance of democratic values in the future development of artificial intelligence, hinting to an extent against China and its rising presence in that area.

The Artificial Intelligence Action Summit, jointly organized by France’s President Emmanuel Macron and India’s Prime Minister Narendra Modi from February 10-11, will bring together political leaders, tech executives, and policymakers to discuss AI’s global roadmap for future development. The summit comes against the background of the recently established DeepSeek, a Chinese AI company that has sought to undermine Silicon Valley with its latest technological improvements.

Democratic Powers’ Role:

Kyle made it clear that the UK intends to position itself at the forefront of AI development, leveraging its scientific expertise and technological capabilities. He stressed that governments play a crucial role in ensuring that AI aligns with democratic values and does not become a tool for authoritarian regimes.

Kyle stated, “Government does have agency in how this technology is developed and deployed and consumed. We need to use that agency to reinforce our democratic principles, our liberal values and our democratic way of life. Adding that he was under no illusion, there were some [other] countries that seek to do the same for their ways of life and their outlooks”.

Without naming nor specifying any particular country, Kyle said, “he was not pinpointing one country, but it was important that democratic countries prevailed so we can defend, and keep people safe”. He explained that competing states are already shaping AI according to their respective political ideologies. Such remarks are indications that China has begun establishing its own foothold in AI as presumably challenging Western leadership in this area.

Impact of DeepSeek Emergence:

Some investors in the United States characterized DeepSeek’s recent breakthroughs as a “Sputnik moment,” referring to the trauma felt after the first artificial satellite was put in orbit by the Soviet Union in 1957. The AI model from the Chinese firm has been developed at a low cost and is mostly on par with or has improved on US rivals, raising security approaches by Western nations. Kyle confirmed that national safety repercussions of DeepSeek and its chatbot innovation would be scrutinized by British officials. However, he maintained that competition should be a motivation rather than something to cause fright. He said, “I am enthused and motivated by DeepSeek. I’m not fearful”.

The AI Summit and UK’s AI Growth Zones:

Now, the Paris summit has been structured around facets of how AI will affect jobs, cultures, and global governance as opposed to merely safety concerns, which were the preoccupation of the UK’s first, inaugural AI summit held at Bletchley Park in 2023. Some of the prominent participants are; US Vice President, JD Vance, President of the European Commission, Ursula von der Leyen, Chancellor of Germany, Olaf Scholz, Google CEO, Sundar Pichai, CEO of OpenAI, Sam Altman and AI pioneer Nobel Prize winner, Demis Hassabis. China’s Vice Premier Zhang Guoqing will also be attending, making the summit geopolitically important.

Kyle has announced on the UK’s part that bids are opened for AI growth zones, part of the AI strategy of the UK, that will now host new data centers critical for AI training and operation. Its aim is to bring economic rejuvenation to what are considered historically left behind regions, especially those in Scotland, Wales, and northern England. Kyle stated, “We are putting extra effort in finding those parts of the country which, for too long, have been left behind when new innovations, new opportunities are available. We are determined that those parts of the country are first in the queue to benefit … to the maximum possible from this new wave of opportunity that’s striking our economy”.

Energy provision in AI growth zones would then be increased by government promise to ensure that the zones have access to more than 500MW of power, enough to power about two million homes. Potential first sites for these AI hubs include the Culham Science Centre in Oxfordshire, where the UK Atomic Energy Authority is based.

AI Development:

A draft early closing statement of the summit seen by the Guardian goes for making AI “sustainable for people and the planet.” The same statement emphasized that it should be open, inclusive, transparent, ethical, safe, secure, and trustworthy. It does say trust and safety in AI governance in spite of fears the summit will not be enough on safety issues. Although the AI race speeds up, the UK’s posture is indicative of a wider western push to retain its leadership in AI innovation while making sure the technology works for and with democratic values. Whether it can fulfill this vision with rising global competition still awaits to be seen.

Tag: AI Development

India’s AI Ambitions: Can It Catch Up in the Global Race?