Union IT Minister Ashwini Vaishnaw highlighted India’s cost-effective moon mission, Chandrayaan-3, as an example of the nation’s innovative capacity to reduce AI development costs. During a panel with OpenAI CEO Sam Altman, Vaishnaw mentioned plans for an open competition to encourage startups to provide technical solutions sought by various government departments.

India’s Chandrayaan-3 mission cost Rs 600 crore, significantly less than the billions spent by other countries on lunar exploration. Vaishnaw emphasised that innovation could similarly lower AI development costs. “Our young entrepreneurs, startups, researchers are really focused on getting that next level of innovation which will reduce the cost,” he stated.

AI Development and Innovation

Vaishnaw noted India’s comprehensive approach to AI development, including creating indigenous chipsets and offering affordable computing facilities. The focus is also on developing datasets tailored to Indian languages and cultural nuances for training AI models. This holistic strategy aims to position India as a leader in AI innovation.

The government plans to offer Indian enterprises and startups access to high-end GPU computing at USD 1.6 per hour, a significant reduction from the current USD 6 per hour rate. This initiative is expected to support the growth of AI capabilities within the country.

Changing Perspectives on India’s AI Potential

Initially sceptical about India’s ability to create a low-cost foundational AI model like ChatGPT in 2023, Altman has revised his opinion due to advancements in AI. He now sees India as a potential frontrunner in the AI sector. Altman remarked that the cost of an intelligence unit in AI development is expected to decrease tenfold by the year’s end.

Altman acknowledged that while reasoning modules remain costly and challenging to train, they are feasible. “I think that’s going to lead to an explosion of really great creativity and India should be a leader there,” he said.

Encouraging Global Innovation

Vaishnaw supported Altman’s view, asserting that cost-reducing innovation can originate globally. “Why shouldn’t it come from India? Our young entrepreneurs, our startups, our researchers, they are really, really focused on getting that next level of innovation which will reduce the cost,” he reiterated.

This focus on innovation aligns with India’s broader efforts to enhance its technological capabilities and competitiveness on the global stage. By fostering an environment conducive to creative solutions, India aims to leverage its talent pool for significant advancements in AI and beyond.