Vaishnaw’s Praise for DeepSeek Rekindles AI Investment Debate | | Generative ai advantages and disadvantages | Generative ai use cases in financial services | Turtles AI

India’s IT Minister Ashwini Vaishnaw praised DeepSeek for its innovative low-cost AI model, comparing it to government efforts under the IndiaAI mission. The Chinese startup’s success reignites the debate over the effectiveness of investment and calls into question past statements by OpenAI’s Sam Altman. Altman’s return to India coincides with his company’s legal disputes in the country.

Key points:

• DeepSeek and the cheap AI model: The Chinese startup built a powerful AI model with less than $6 million in just two months, using less advanced hardware.
• IndiaAI and government investment: India has allocated $1.25 billion for AI development, focusing on infrastructure and local startups.
• Statements by Sam Altman: OpenAI CEO had expressed skepticism about India’s ability to develop a competitive AI model with only $10 million, statements now called into question.
• Altman’s visit to India: The CEO will return to the country Feb. 5 as OpenAI faces a legal battle with local publishers over alleged copyright violations.

Ashwini Vaishnaw’s praise of DeepSeek and its approach to research in AI has brought the debate over the resources needed to develop advanced models in the field back into focus. The IT minister pointed out that the Chinese startup’s success shows that innovation does not depend solely on billion-dollar investments, but also on smart strategies and optimizing available resources. His words seem to indirectly respond to comments by Sam Altman, CEO of OpenAI, who, during a visit to India in 2023, had raised doubts about whether an Indian team could create a competitive AI model with only $10 million. His statements, now back viral, have been contradicted by the rise of DeepSeek, which with just $5.5 million has developed a system capable of competing with Western solutions.

India, meanwhile, has launched the IndiaAI mission, allocating $1.25 billion to infrastructure and startups in the sector. The goal is to build a localized AI ecosystem and reduce dependence on foreign technologies. Vaishnaw reiterated that the project is not just about funding, but also about engineering expertise and strategy, bringing DeepSeek as an example of efficient resource management.

The Chinese startup’s AI model has shaken established beliefs in the industry, demonstrating that significant results can be achieved with low cost and less advanced hardware, such as Nvidia’s H800 chips. The developed application quickly surpassed OpenAI’s ChatGPT in terms of downloads in Apple’s App Store, a sign of Chinese AI’s growing competitiveness in the global market.

Meanwhile, Sam Altman is preparing to return to India on Feb. 5 as OpenAI is embroiled in a legal dispute with local publishers, who accuse the company of copyright violations.

His visit comes at an important time, with the AI sector in turmoil and India increasingly determined to carve out a prominent role for itself in the global landscape.