The global AI landscape was rocked earlier this month by the launch of DeepSeek-R1 and DeepSeek-R1-Zero, two groundbreaking reasoning models by Chinese AI company DeepSeek.
These models not only outperformed existing closed-source models across key benchmarks but also achieved this remarkable feat with just $6 million in investment.
This move put OpenAI’s leadership in question, especially since OpenAI spent a staggering $100 million to develop its GPT-4 model.
In India, DeepSeek’s rise has sparked widespread interest and led to discussions about the potential for India to develop its own foundational models.
In response, Union IT Minister Ashwini Vaishnaw announced that India would host DeepSeek’s models on local servers, a strategic step that marks a key milestone in the nation’s AI ambitions.
Ashwini Vaishnaw also revealed that India plans to develop its own LLM, making the country the latest player in the global AI arms race.
To support this endeavor, the Centre’s flagship IndiaAI Mission has introduced a proposal inviting applications from Indian startups, researchers, and entrepreneurs to collaborate on the development of foundational AI models tailored to India’s unique challenges and opportunities.
The initiative aims to foster the creation of indigenous AI models that align with global standards while addressing the specific needs of sectors such as agriculture, healthcare, and education.
Funding and Support for Indigenous AI Models
The IndiaAI Mission’s proposal promises direct and equity-based funding to selected entities to undertake the monumental task of developing the country’s first large language model.
Under the direct funding route, the initiative will provide milestone-based grants along with compute credits for AI infrastructure.
Additionally, the government may take an equity stake in the entities involved through mutually agreed terms, ensuring the success and sustainability of the project.
Key Objectives for the LLM
The Centre has outlined several key objectives for the proposed AI model:
- It must be trained on diverse Indian datasets, reflecting the country’s unique demographics and challenges.
- It should be capable of addressing India-specific needs in sectors like healthcare, agriculture, education, and more.
- It must support scalable use cases with measurable societal and economic outcomes.
- The model should adhere to ethical AI principles, including mechanisms for bias mitigation, fairness, and transparency.
- Intellectual property for the model will remain with the developing entity, but the government will hold a perpetual license for public use.
Evaluation and Support for Startups
Applications for the project will be evaluated based on several factors, including innovation, scalability, sustainability, and financial viability.
Additionally, the expertise of the team and the feasibility of the proposed use cases will be key criteria.
The selection process will involve a review by a panel of experts, and shortlisted applicants will be invited to present their proposals in detail.
In a show of commitment, Minister Vaishnaw also announced that the government has selected 10 companies to supply a total of 18,693 GPUs.
This AI compute will be available to the startups and entities that take up the task of developing the indigenously-built LLM.
Hopes Rest on Innovation and Talent
While the proposal marks a significant step toward making India a leader in AI, its success will depend on the innovation, talent, and cost-effectiveness of India’s vibrant startup ecosystem.
As the AI race heats up globally, India’s ambition to create its own large language model presents an exciting opportunity for homegrown solutions tailored to the country’s needs.
Though the full realization of this project remains uncertain, it has sparked optimism that India can rise as a formidable player in the AI space, creating models that not only meet international standards but also solve the unique problems faced by its diverse population.
The IndiaAI Mission’s push for collaboration and innovation could very well set the stage for India to shape the future of AI in a way that benefits its economy, society, and global standing.
