Sam Altman’s U-turn on Indian AI; Says ‘India’s AI growth is “incredible,” should be a global leader’

In a surprising turnaround, OpenAI CEO Sam Altman has expressed strong support for India’s growing role in artificial intelligence, calling the country’s progress “incredible” and urging it to become a leader in the global AI landscape.

Altman made the remarks during a meeting with Union IT Minister Ashwini Vaishnaw and OpenAI’s Pragya Misra on his most recent visit to India. He highlighted that India has become OpenAI’s second-largest market after the US, with user growth tripling in the past year.

Altman praised the innovation taking place in India, mentioning his excitement about the nation’s plans to scale its AI development. He stated that OpenAI aims to deepen its engagement in India, particularly as the country ramps up efforts to build its own foundational AI models in the near future.

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Reversing course on earlier criticism

Altman’s current endorsement of India’s AI capabilities marks a notable shift from his previous stance. In a 2023 interview, he had expressed doubts about India being able to develop AI models comparable to OpenAI’s software. He had dismissed the idea of competing with US tech giants on foundation model training, though he had encouraged Indian firms to continue striving regardless of the challenges.

However, rising competition from China’s AI startup DeepSeek may have influenced Altman’s revised perspective. DeepSeek has disrupted the global AI sector with its cost-effective, open-source models, creating pressure on Western companies like OpenAI to adjust their pricing strategies.

Previously, major players like OpenAI, Google, Meta, and Microsoft dominated the AI industry, but DeepSeek’s success has demonstrated that other nations can compete with these giants.

India accelerates AI development plans

In response to both global and domestic developments, India has fast-tracked its AI initiatives. Last week, IT Minister Ashwini Vaishnaw outlined a plan to build multiple foundation models within the next 10 months. The government has also launched the Rs 10,738 crore India AI Mission, with a focus on fostering innovation and identifying startups capable of driving AI development.

Altman’s visit to India on February 5 included a closed-door meeting with some of the country’s top startup founders and investors to discuss OpenAI’s strategy for the Indian market. Prominent attendees included Paytm’s Vijay Shekhar Sharma, Unacademy’s Gaurav Munjal, and Ixigo’s Aloke Bajpai, among others. Investors from firms like Peak XV Partners, Accel, and Lightspeed Venture Partners were also present.

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During the meeting, industry leaders spoke about OpenAI’s roadmap and innovations, including the use of AI agents and tools to address real-world challenges. Srikanth Velamakanni, co-founder of Fractal, described the discussions as insightful and expressed enthusiasm for OpenAI’s future projects.

Growing global competition in AI

Altman’s visit and India’s accelerated efforts come at a crucial time, as AI development increasingly becomes a key battleground for global tech leadership. China’s DeepSeek recently unveiled a large language model that rivals those from OpenAI, Google, and Meta, at a fraction of the typical cost. This has prompted governments and companies worldwide to push for faster innovation.

With India’s ambitious plans and OpenAI’s renewed commitment, the country appears well-positioned to emerge as a major player in the AI revolution, contributing to a more competitive and diverse global AI landscape.