Artificial Intelligence is no longer just a technological breakthrough—it’s a geopolitical and economic force that will shape the next century. Nations that control AI will dictate the future, while those that remain passive consumers will be left behind. As India stands at the crossroads of an AI-driven world, a critical debate is unfolding:
Should we invest in building foundational AI models like GPT-4, or is it more practical to focus on developing applications on top of existing AI models from OpenAI, Google, or Meta?
A large section of India’s tech industry believes that investing in foundational AI models is a waste of money—an expensive arms race where only a handful of global giants can compete. They argue that India should focus on building AI-powered products rather than spending billions trying to match OpenAI or Google in large-scale model development.
On the surface, this seems like a rational argument. After all, businesses make money from products, not research papers. But if we take a deeper look at how AI is shaping global power structures, it becomes clear that India cannot afford to sit on the sidelines.
The ‘Just Build on Existing AI’ Argument – And Why It’s Short-Sighted
The argument for not building foundational AI models is simple:
Cost: Training a state-of-the-art AI model requires billions of dollars in computing power, data, and AI chips—resources that India currently lacks at scale.
Speed: By the time India develops its own models, the AI giants will already be several steps ahead.
Practicality: The real value is in applications, not the models themselves. Historically, the companies that won in the internet and cloud computing revolutions were not the ones building the infrastructure but those that built businesses on top of it.
It’s true that not every country needs to build its own foundational models—but India is not just any country. Relying on foreign AI models comes with risks that we cannot afford to ignore.
The Risks of AI Dependence
Data Sovereignty is Non-NegotiableAI models learn from data. When India relies on foreign AI, our data is being processed and used to refine models that are not in our control. Whether it’s financial transactions, governance, healthcare, or security—should we really be comfortable with AI models trained and operated by entities outside our jurisdiction?
AI Reflects the Bias of Its CreatorsMost global AI models are trained primarily on Western data sets. These models don’t just process language—they shape narratives, influence markets, and make decisions that affect billions. Without India’s own AI models, we risk being algorithmically colonised, where AI systems don’t fully understand or represent our linguistic, cultural, and socio-economic realities.
AI is the Next Arms RaceThe US, China, and the EU are investing billions into AI because they understand its strategic importance. China, for example, spent over a decade developing its AI capabilities—not just through a single company but through a national strategy involving government, private corporations, and universities. This is how they built DeepSeek, their answer to OpenAI’s GPT models. India needs a similar approach if it wants to be an AI leader, not just a customer.
Lack of Compute Infrastructure Will Keep India DependentOne of India’s biggest weaknesses right now is its lack of high-end computing infrastructure. AI research is bottlenecked by our dependence on foreign AI chips (like NVIDIA GPUs) and cloud computing platforms owned by global tech giants. Without our own foundational models, we will always be at the mercy of others.
What Should India Do? A Balanced Approach
India does not need to compete head-on with OpenAI or Google to build a GPT-5-level model overnight. Instead, we need a strategic, long-term approach:
Invest in Mid-Sized, Domain-Specific AI ModelsInstead of pouring billions into chasing cutting-edge AGI (Artificial General Intelligence), India should focus on developing AI models for specific sectors—such as governance, healthcare, fintech, and education—where we can have an immediate impact.
Strengthen AI Compute InfrastructureNo AI model can be built without hardware. India needs to invest in AI supercomputing facilities and semiconductor R&D so that we are not forever dependent on imported chips and cloud infrastructure.
Retain and Attract AI TalentIndia produces some of the world’s best AI researchers, yet many leave for opportunities abroad. A China-style approach to reversing brain drain—by offering competitive grants, research funding, and world-class AI labs—can ensure that top talent stays in India.
Develop AI Regulations That Protect India’s InterestsEven if India does not build its own large-scale models today, it must ensure that foreign AI models operating in India comply with data security, ethical AI, and transparency standards.
The Cost of Not Building AI is Greater Than the Cost of Building It
Building foundational AI models is not about competing with OpenAI, Google, or China—it’s about India’s digital and technological sovereignty.
If India does not take AI seriously today, we will be forever dependent on global tech giants for critical AI infrastructure. That means the next generation of Indian businesses, governance, and digital economy will be shaped by algorithms trained on data and priorities that are not our own.
Yes, AI development is expensive. Yes, it takes time. But the cost of not investing in our own AI capabilities is far greater.
If we want to be a global leader in the AI age, the time to act is now.
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