India to Develop Low-Cost AI Model and Indigenous GPUs

Union IT Minister Ashwini Vaishnaw has announced that India is set to develop a high-end computing GPU within 3-5 years while a foundational AI platform will be ready in just 10 months. Speaking at the Budget Roundtable 2025, organized by India Today & Business Today, he also revealed that the government will provide 18,000 high-end GPU-based compute facilities to accelerate AI development.

To build an indigenous GPU, the government is following a three-pronged approach, using open-source or licensed chip designs as a foundation. This model, adopted by global tech leaders, will help India reduce reliance on dominant players like Nvidia, which currently holds over 80% of the GPU market. The move is expected to fast-track India's entry into the AI computing space and strengthen its digital infrastructure.

During a panel discussion, OpenAI CEO Sam Altman clarified his 2023 remarks on India's AI capabilities, stating that his comment about it being "hopeless" for India to develop a foundational AI model was taken out of context. He expressed OpenAI’s enthusiasm for deeper collaboration, recognizing India’s growing role in AI innovation.

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Vaishnaw highlighted India's existing AI progress, citing several homegrown AI startups that have developed efficient models. He also pointed to Indian Railways’ success, which used AI models to increase confirmed ticket availability by 27%, demonstrating AI’s potential in solving large-scale operational challenges.

The discussion on India’s AI future gained momentum after the rise of Chinese AI firm DeepSeek, which developed a foundational model at a lower cost than Western counterparts. In response, Vaishnaw emphasized India’s cost-effective innovation approach, drawing parallels with Chandrayaan-3’s success in reducing space exploration costs, which he believes can be applied to AI development as well.

Altman’s recent statements indicate OpenAI’s interest in working closely with India on AI research, infrastructure, and policy. As India positions itself as a global AI hub, partnerships with firms like OpenAI could play a key role in shaping the country’s AI ecosystem and expanding its capabilities.

With India advancing in AI innovation and indigenous GPU development, these initiatives will enhance technological self-sufficiency, drive economic growth, and strengthen the country’s position in the global AI landscape. The government’s push for cost-efficient AI solutions through open competitions is expected to create new opportunities for startups and researchers, solidifying India's role in next-generation AI advancements.

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