India Prepares for the AI Challenge by Developing its Own LLM Fundamental Model

IT Minister Ashwini Vaishnaw announced on January 30 that the Indian government has chosen to develop a large language model of its own domestically as part of the INR 10,370 crore IndiaAI Mission, just days after a startup Chinese artificial intelligence (AI) lab unveiled the low-cost foundational model DeepSeek.
Additionally, the government has chosen ten businesses to provide 18,693 graphics processing units, or GPUs—high-end CPUs required to create machine learning tools that can be used to build a basic model. These firms include CMS Computers, Ctrls Datacenters, Locuz Enterprise Solutions, NxtGen Datacenter, Orient Technologies, Jio Platforms, Tata Communications, Yotta, which is funded by the Hiranandani Group, and Vensysco Technologies. Yotta has promised to supply 9,216 GPUs, which accounts for over half of the total.
According to Vaishnaw, ministry teams have been collaborating closely with professors, researchers, startups, and others for the past one and a half years. The government is currently soliciting ideas for creating India's own basic model. The model is free of prejudices and will take into account the Indian background, languages, and culture.
Sharing his views on the subject, Giridhar LV, CEO and Co-founder, Nuvepro Technologies opoined, "India’s AI journey is no longer about catching up—it’s about leading with innovation. With the rapid advancements in AI, India is stepping up by developing its own Large Language Model (LLM)—a foundational AI model tailored to the country’s diverse linguistic and industry needs. Unlike generic global models, this initiative aims to create an AI framework deeply rooted in India’s unique datasets, regional languages, and cultural nuances. By investing in homegrown AI capabilities, India is ensuring data sovereignty, reduced dependency on foreign models, and AI solutions that align with local industries. The push towards indigenous AI development also aligns with the government's Digital India and Atmanirbhar Bharat initiatives, fostering self-reliance in technology."
Focus on Developing Fundamental Model
In addition, Vaishnaw stated that the government is in contact with a minimum of six developers to construct the foundational model, which may take four to eight months. "In the coming months, we will have a world-class foundational model," the minister stated. However, he omitted to mention the companies the government is currently in contact with or the estimated cost of building the model. Regarding assisting with the acquisition of computing power, Vaishnaw stated that approximately 10,000 GPUs out of the 18,693 that have been authorised for empanelment are prepared for installation today.
In a few days, the government will open a shared computing facility where researchers and businesses can access the power of computers. Higher-end GPU access will cost INR 150 per hour, while lower-end GPU use would cost Rs 115.85 per hour. The government would provide end customers with a 40% price subsidy to further facilitate access to these services.
Proposal from IndiaAI Mission
The IndiaAI Mission's plan states that the bids for building LLMs will be shortlisted based on a number of criteria, including the approach's innovativeness, scalability and sustainability, financial viability, and ethical considerations, among others.
Additionally, the Centre will choose candidates based on the teams' abilities, the viability of the submissions, and their potential impact. According to a blog post on the IndiaAI website, a panel of experts will analyse the submitted proposals before inviting the chosen candidates for a thorough presentation. It is anticipated that startups aiming to create an LLM that is developed domestically will also have access to this AI compute. Although it is still unclear if the prospective foundational AI model will be implemented, optimism depends on India's startup ecosystem's resourcefulness, inventiveness, and talent pool.

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