50+ Firms Join Race For India AI

Nearly a dozen firms have shown interest in building the foundation model and LLMs, while others have proposed sector-specific SLMs.

The government has received expressions of interest from more than 50 companies to develop an India-specific artificial intelligence (AI) foundation model, small language models (SLMs), and large language models (LLMs), sources familiar with the matter said.

Among them, nearly a dozen firms have shown interest in building the foundation model and LLMs, while others have proposed sector-specific SLMs, a source said.

"A detailed framework outlining the requirements for developing the foundation model, SLMs, or LLMs will be released in a few days. Bidders will need to qualify on parameters such as feasibility, scalability, and practicality of their proposals," a government official said.

On January 30, Union Information Technology Minister Ashwini Vaishnaw stated that India would have its own sovereign foundation model within 8 to 10 months, or by July if companies adopted an aggressive approach.

Meity has been working with experts in the fields of LLMs and SLMs for the past 18 months to develop a framework for India's AI foundation AI model, the minister said.

"We have asked all those interested to submit a PoC (proof of concept) for the ideas of LLM, SLM or foundation model that they wish to work on," another official said.

"A technical evaluation committee will shortly be formed to go through these submissions. We will then ask the shortlisted companies to start work on the prototype," another official added.

The foundation models are part of the Rs 10,372 crore (Rs 103.72 billion) INDIAai Mission, which was approved by the Union Cabinet in March 2024.

The government has outlined a two-pronged funding strategy for selected companies.

Under the direct funding model, companies will receive central government support in addition to state-level incentives.

The second approach involves equity-based funding, allowing private investors to participate.

Beyond foundation models, the government has also received bids from 10 companies to procure and supply 18,693 GPUs, including latest-generation models, such as the H100, H200, MI325, and MI300X.

Reliance Industries-owned Jio Platforms, Tata Communications and the Hiranandani Group-owned Yotta Data Services are among the key players that will procure and supply GPUs to startups, academics, researchers, and other users in the country.

To support AI innovation, the government will offer a 40 per cent discount on GPU access for startups, researchers, academic institutions, and students.

Additional discounts may be provided for users who commit to long-term usage of six months or more, an official said. These incentives will be available for the next four years.

SEVEN PILLARS OF INDIAai MISSION

1. Build a scalable AI ecosystem with services & resources
2. Promote AI innovation by government intervention
3. Streamline access to high-quality non-personal datasets for AI model training
4. Promote indigenous creation of AI applications in priority, critical sectors
5. Reduce barriers to AI education, ensure latest AI toolset access
6. Support deep-tech AI startups by providing them incentives, mentoring
7. Ensure responsible AI development by drawing clear guidelines, guardrails

Feature Presentation: Ashish Narsale/Rediff.com