India’s IT Minister Applauds DeepSeek for Disrupting AI Sector
India’s IT Minister, Ashwini Vaishnaw, has praised Chinese AI startup DeepSeek for challenging industry norms with its low-cost AI model. He compared its frugal approach to India’s ongoing efforts to develop a localized AI ecosystem.
Speaking at an event in Odisha, Vaishnaw referenced DeepSeek’s achievement, stating, “Some people question the amount of investments the government has committed in (IndiaAI mission). You have seen what DeepSeek has done? $5.5 million and a very, very powerful model. Because, the use of brain.”
DeepSeek’s AI model, built in just two months with under $6 million using Nvidia’s H800 chips, has reshaped global perspectives on AI development. Its success has led to increased downloads of its app, surpassing OpenAI’s ChatGPT on Apple’s App Store.
India’s $1.25 Billion AI Push
In March, India announced a $1.25 billion investment under its IndiaAI Mission, aiming to fund AI startups and strengthen AI infrastructure. Vaishnaw’s comments appeared to counter skepticism over whether such funding was sufficient to build competitive AI models.
His remarks also subtly addressed previous statements by OpenAI CEO Sam Altman, who, during a visit to India last year, doubted that an Indian team could build a competitive AI model with just $10 million.
Altman’s Return to India Amid Legal Battles
Altman is set to visit India again on February 5, at a time when OpenAI faces legal challenges in the country over copyright disputes with digital news and book publishers. Meanwhile, DeepSeek’s rapid rise continues to challenge assumptions about AI development costs and capabilities.
With India’s AI ambitions gaining momentum, the government remains focused on fostering innovation while keeping investments efficient.
With inputs from Reuters
