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DeepSeek: India’s Crucial AI Moment

February 12, 2025
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DeepSeek: India’s Crucial AI Moment

A new, low-cost, open-source artificial intelligence model from a Chinese startup is disrupting the AI industry, posing a significant challenge to established players. This development has serious implications for India, which risks falling behind in the crucial field of AI development.

The Chinese model achieves comparable results to those of resource-heavy models at a significantly lower cost. It undercuts the major financial investments made by large technology firms.

India’s participation is primarily as an observer. It’s critical for India, with its strong software programming talent, to actively engage in AI development.

Programs based on the development of the Chinese startup’s model will significantly boost productivity for a small part of the coding workforce, it will negatively impact of majority of it. AI models would allow resources to be allocated more efficiently. Workers no longer needed by AI could re-train to focus on new tasks, and potentially generate growth within the economy. Policymakers do not seem aware of this link. The government’s allocated funding, to an AI mission, is far less when compared to funding for other industries.

Indian tech firms have been hesitant to invest in foundational AI research. Existing models have been adapted to address local languages, however they will likely be overshadowed by more advanced products from overseas.

India possesses only a small percentage of the world’s top-tier AI talent, many of them moving abroad. There’s a lack of sufficient support for basic research within the country.

Indian billionaires have invested in the necessary infrastructure for AI development. However, infrastructure alone will not be enough. Significant breakthroughs in natural language processing require numerous, but cheap, model-building experiments. Software outsourcing firms should be spearheading this, yet they haven’t demonstrated a hunger for bold, innovative projects.

China has significantly advanced its technological capabilities compared to India. It already holds dominance in drones, solar panels, electric vehicles, high-speed trains, and now generative AI.

Indian Software Companies, and politicians, need to invest significantly in AI, artificial general intelligence will handle most programming. To avoid being only an importer of AI tools, India must create and control its foundational technology, demanding substantial government backing for research.

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