For years, the artificial intelligence race has been a two-player game, dominated by the United States and China. Companies like OpenAI, backed by Microsoft, have been setting the gold standard for generative AI, while China’s DeepSeek has emerged as a powerful disruptor with its cost-effective breakthroughs. But now, India is stepping in, determined to prove it can be a key player in this high-stakes technological rivalry.
By 2025, India plans to launch its own generative AI model, signaling a major strategic move. The government has secured 18,693 high-performance GPUs, including 12,896 Nvidia H100s, and is actively seeking $20 billion in foreign investment to build data center infrastructure. With at least six AI developers lined up, India aims to roll out its model within the next four to eight months.
🚨 India will develop its own AI model in 10 months, backed by 18,693 GPUs, focusing on Indian context ~ Minister Ashwini Vaishnaw.
— Beats in Brief (@beatsinbrief) January 30, 2025
He compared India’s AI push to global models like DeepSeek AI and ChatGPT, highlighting its growing infrastructure. pic.twitter.com/h59Pb7ytoZ
China vs. the US: Who’s Winning the AI Arms Race?
The AI competition between the US and China has intensified, with each side pushing for dominance in research, infrastructure, and talent. The US, through OpenAI, Google DeepMind, and Anthropic, has long been the leader in large-scale AI models, fueled by deep-pocketed investors and world-class research.
China, however, has taken a different route, focusing on efficiency and rapid deployment. DeepSeek, a relatively new player, has already challenged OpenAI by developing powerful models at a fraction of the cost. Its latest reasoning model, DeepSeek R1, delivers OpenAI-level performance while spending just $5.6 million on training—compared to the estimated $100 million to $1 billion spent by US companies.
Adding to the controversy, OpenAI recently accused DeepSeek of using distillation techniques to extract knowledge from larger models, a move that has raised ethical concerns over AI training methods.
How dare DeepSeek stole the stolen data. pic.twitter.com/eyFqiWDUAU
— AshutoshShrivastava (@ai_for_success) January 30, 2025
Can India Disrupt the AI Status Quo?
With China challenging US supremacy, India sees an opportunity to position itself as a third force in the AI battle. The country has a massive pool of AI talent, with many Indian researchers already playing key roles at OpenAI, Google, and Meta.
India has huge consumer market base for AI. It should find a way to Build AI. pic.twitter.com/HmAQWxyUw6
— Vikram Nayak (@VikramCertified) January 24, 2025
Additionally, India's rapidly growing digital infrastructure, backed by government initiatives, provides a strong foundation for AI development. The nation's strategic push for self-reliance further ensures that it does not fall behind in the global tech race. However, India's success will depend on whether it can match the innovation of US firms while also achieving the cost efficiency that has made China's DeepSeek a serious competitor. If India can balance these two factors, it could reshape the AI landscape and emerge as a key player in the ongoing global competition.
India’s developers have gone a leap further: they’re increasingly using AI to build AI. India has the second-highest number of contributors to public generative AI projects.
— Thomas Dohmke (@ashtom) October 29, 2024
This makes it evermore likely the next great AI multinational is borne on the continent. pic.twitter.com/Y8VpvNBc7X
However, India’s success will depend on whether it can match the innovation of US firms while also achieving the cost efficiency of China’s DeepSeek. If India succeeds, the AI war could become a three-way contest—a shift that would challenge US and Chinese dominance and open up new possibilities for global AI leadership.

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