3 min read Last Updated : Feb 05 2025 | 4:29 PM IST
OpenAI Chief Executive Sam Altman met with India's IT Minister Ashwini Vaishnaw on Wednesday to discuss India's push for a low-cost AI ecosystem, including the development of GPUs, AI models, and applications.
The meeting may signal OpenAI’s growing interest in India's artificial intelligence (AI) landscape, even as the company faces legal hurdles in its second-largest market by user base.
Following the talk, Vaishnaw wrote a post on X, "Had super cool discussion with Sam Altman on our strategy of creating the entire AI stack - GPUs, model, and apps. Willing to collaborate with India on all three."
Altman’s visit marks a shift in tone from his 2023 remarks, when he expressed scepticism about advanced AI models emerging outside the United States. Now, however, he sees India as a key player in the AI revolution.
“India is an incredibly important market for AI in general, for OpenAI in particular. It’s our second-biggest market, and we have tripled our users here in the last year... The country has embraced AI technology and is building the entire stack, from chips to models and applications,” Altman said.
India’s AI ambitions
India is ramping up its AI efforts with a national initiative aimed at building its own foundational AI model to compete with global players like ChatGPT and DeepSeek R1. The initiative includes:
- A national computer infrastructure featuring 18,693 GPUs to support AI startups and researchers.
- A government-backed subsidy to reduce AI computing costs to under ₹100 ($1.16) per hour, far below the $2.5-$3 per hour charged by global AI models.
Vaishnaw compared India’s AI ambitions to the country's low-cost lunar mission, asking, "Innovation can come from anywhere in the world, so why shouldn’t it come from India?"
Competition with DeepSeek and global AI race
Altman’s India visit comes amid rising competition from Chinese startup DeepSeek, which has shaken the industry with its low-cost, high-performance AI models. DeepSeek’s R1 model, built for under $6 million, recently overtook ChatGPT as the top-ranked free AI app on Apple’s App Store.
Altman’s trip to India follows visits to Japan and Korea, where he secured deals with SoftBank Group and Kakao. He also held talks with Samsung regarding the Stargate AI data centre project, backed by US President Donald Trump.
Meanwhile, the US government has announced a $500 billion AI infrastructure investment in collaboration with Oracle, Microsoft, and SoftBank to counter China’s AI dominance.
Copyright infringement cases against OpenAI in India
OpenAI is also dealing with multiple lawsuits in India over copyright concerns. The company has maintained that it only uses publicly available data and has questioned whether Indian courts have jurisdiction over the matter. Delhi High Court though recently heard arguments on why it may have jurisdiction to hear cases against OpenAI in India.
Despite challenges, OpenAI is looking to collaborate with India. Following his discussion with Altman, Vaishnaw posted on X that OpenAI was open to working with India across all AI verticals.
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