{"id":54907,"date":"2025-12-10T22:39:48","date_gmt":"2025-12-11T03:39:48","guid":{"rendered":"https:\/\/newssprinters.com\/index.php\/world\/big-tech-bets-big-on-ai\/10\/12\/2025\/"},"modified":"2025-12-10T22:39:48","modified_gmt":"2025-12-11T03:39:48","slug":"big-tech-bets-big-on-ai","status":"publish","type":"post","link":"https:\/\/newssprinters.com\/index.php\/world\/big-tech-bets-big-on-ai\/10\/12\/2025\/","title":{"rendered":"Big tech bets big on AI"},"content":{"rendered":"<p>\n<\/p>\n<div data-testid=\"article-body\">\n<div class=\"bodyItems-wrapper\">\n<figure data-testid=\"article-figure-image\" class=\"yf-1jajr0v\">\n<div class=\"image-container yf-1gfnohs loader\" style=\"--max-height: 540px;\">\n<div class=\"image-wrapper yf-1gfnohs\" style=\"--aspect-ratio: 960 \/ 540; --img-max-width: 960px;\"><\/div>\n<\/div><figcaption class=\"yf-1jajr0v\"><!-- HTML_TAG_START -->India is a hedge against the global AI bubble, some experts say [NurPhoto via Getty Images)]<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->This week, tech giants Amazon and Microsoft pledged an eye-popping $50bn-plus combined investment in India, putting artificial intelligence (AI) in the spotlight.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Microsoft&#8217;s Satya Nadella <a href=\"https:\/\/www.bbc.com\/news\/articles\/c3w79pgn8peo?xtor=AL-72-%5Bpartner%5D-%5Byahoo.north.america%5D-%5Blink%5D-%5Bnews%5D-%5Bbizdev%5D-%5Bisapi%5D\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:announced;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">announced<\/a> his company&#8217;s largest investment ever in Asia &#8211; $17.5bn (\u00a313.14bn) &#8211; &#8220;to help build the infrastructure, skills, and sovereign capabilities needed for India&#8217;s AI-first future&#8221;.<!-- HTML_TAG_END --><\/p>\n<p> <iframe loading=\"lazy\" title=\"CDS Widget\" src=\"https:\/\/templates.cds.yahoo.com\/remote\/widget?campaignId=f29d9636-839a-47b1-b30b-2c5d57501dc4&amp;lineItemId=44fc9657-ef9b-4b1c-af68-6ddd597c9599&amp;site=finance&amp;contentId=9ff6193b-289c-3498-b7ca-70239762df69&amp;spaceId=1183300100&amp;providerId=bbc_us_articles_995\" scrolling=\"no\" height=\"400\" data-testid=\"offers-cds-iframe\" class=\"yf-1xws99g\"><\/iframe> <\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Amazon followed suit, and said it was putting in more than $35bn in the country by 2030, with an unspecified chunk of that investment going into boosting AI capabilities.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->The announcements come at a particularly interesting juncture.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->As fears of an AI bubble swept global markets and tech stock valuations soared, several leading brokerages took a contrarian view on India&#8217;s AI landscape.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Christopher Wood of Jefferies said the country&#8217;s stocks were a &#8220;reverse AI trade&#8221;. That basically means India should outperform other markets in the world &#8220;if the AI trade suddenly unwinds&#8221; &#8211; or simply put, the global bubble bursts.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->HSBC also held a similar view, saying Indian equities offered a &#8220;hedge and diversification&#8221; for those uneasy with the ongoing AI rally.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->This comes as Mumbai stocks have lagged behind their Asian peers over the past year, with foreign investors moving billions into Korean and Taiwanese AI-driven tech companies in the absence of comparable opportunities in India.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->In this backdrop, the Amazon and Microsoft investments provide a much-needed fillip &#8211; yet it remains worth asking where India truly stands in the global AI race.<!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-1jajr0v\">\n<div class=\"image-container yf-1gfnohs loader\" style=\"--max-height: 540px;\">\n<div class=\"image-wrapper yf-1gfnohs\" style=\"--aspect-ratio: 960 \/ 540; --img-max-width: 960px;\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"Indian undergraduate students work on their computers as they take part in HackCBS, a 24 hour event of software development. Students gathered in teams to take part in a challenge to develop their ideas in the fields of Internet of Things (IoT), Artificial Intelligence (AI) an Blockchain among others. \" loading=\"lazy\" height=\"540\" width=\"960\" class=\"yf-1gfnohs loader\"\/><\/div>\n<\/div><figcaption class=\"yf-1jajr0v\"><!-- HTML_TAG_START -->India ranks among the top globally in terms of AI talent and developer activity [AFP via Getty Images]<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->There are no easy answers.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->The adoption of AI in India has been rapid. Investments into some parts of the value chain &#8211; such as <a href=\"https:\/\/www.bbc.com\/news\/articles\/cgr417pwek7o?xtor=AL-72-%5Bpartner%5D-%5Byahoo.north.america%5D-%5Blink%5D-%5Bnews%5D-%5Bbizdev%5D-%5Bisapi%5D\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:data centres;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">data centres<\/a>, the physical backbone of AI, or chip-making facilities &#8211; have begun trickling in. Just this week, American chipmaker Intel announced a collaboration with Mumbai-based Tata Electronics to manufacture chips locally.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->But when it comes to a sovereign AI model, it appears India is continuing to play catch-up.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->About a year-and-a-half ago, the Indian government launched an <a href=\"https:\/\/www.bbc.com\/news\/articles\/cp8qglr9r74o?xtor=AL-72-%5Bpartner%5D-%5Byahoo.north.america%5D-%5Blink%5D-%5Bnews%5D-%5Bbizdev%5D-%5Bisapi%5D\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:AI mission;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">AI mission <\/a>through which it began supplying start-ups, universities and researchers with high-end computing chips to develop a large homegrown AI model like OpenAI or China&#8217;s DeepSeek.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->According to the federal electronics ministry, the launch of the sovereign model &#8211; which supports more than 22 languages &#8211; is imminent. In the interim though, the likes of DeepSeek and OpenAI have made further advances, launching newer variants.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->While the government has recognised the need to reduce over-dependence on foreign platforms because of the risk of surveillance and sanctions, India&#8217;s $1.25bn sovereign mission is a shadow of France&#8217;s $117bn or Saudi Arabia&#8217;s $100bn programmes.<!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<p><button class=\"secondary-btn fin-size-large readmore-button    rounded   yf-zc3mmk\" data-ylk=\"elm:readmore;itc:1;sec:content-canvas;slk:Story%20Continues\" aria-label=\"Story Continues\" title=\"Story Continues\"> <span>Story Continues<\/span> <\/button> <\/p>\n<div class=\"read-more-wrapper\" style=\"display: none\" data-testid=\"read-more\">\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->The country&#8217;s ambitions also face numerous other hurdles &#8211; from semiconductor availability to skilled talent and fragmented data ecosystems, according to global consultancy EY.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->India currently lacks enough computational infrastructure or the billions of dollars of research and development (R&amp;D) investment made over decades that gave China and the US a distinct leg up.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Despite its global strength in AI talent, India struggles to keep its developers at home.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->&#8220;The current tightening of overseas work visas provides India a window of opportunity to retain domestic talent and attract Indian-origin talent at home. However, given that top-tier AI talent is mobile globally, attractive policy incentives need to be put in place to incentivise relocation to India,&#8221; the EY report says.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->China, for example, offers a range of incentives such as &#8220;financial support and subsidies, tax incentives and funding for research and development, special talent visas and fast-track immigration&#8221;, the report says.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->India has a much higher concentration of AI-skilled professionals than the global average &#8211; specifically, 2.5 times more. Policies that retain this talent are not yet in place.<!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-1jajr0v\">\n<div class=\"image-container yf-1gfnohs loader\" style=\"--max-height: 455px;\">\n<div class=\"image-wrapper yf-1gfnohs\" style=\"--aspect-ratio: 810 \/ 455; --img-max-width: 810px;\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"Industrial chiller at Yotta Data Services data centre, in Navi Mumbai, India. \" loading=\"lazy\" height=\"455\" width=\"810\" class=\"yf-1gfnohs loader\"\/><\/div>\n<\/div><figcaption class=\"yf-1jajr0v\"><!-- HTML_TAG_START -->India has been attracting billions of dollars of investments into data centres [Bloomberg via Getty Images]<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Yet, despite the challenges, India &#8211; along with countries like Brazil and the Philippines &#8211; punches above its weight in AI, especially in the context of its stage of economic development, an UNCTAD (United Nations Conference on Trade and Development) study said.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->According to the widely tracked Stanford AI Index 2025, the country ranks among the top five in the world on new companies receiving AI investments.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Last year, 74 new Indian AI startups received funding &#8211; a fraction of the more than 1,000 funded in the US.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Indian AI startups raised just $1.16bn privately, compared with over $100bn in the US and nearly $10bn in China.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->But there&#8217;s enough intellectual engagement with AI in India, with the country accounting for 9.2% of AI article publications &#8211; slightly more than the US, but behind Europe and China according to the Stanford AI Index.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Experts say India&#8217;s AI edge may lie less in building costly language models and more in using them downstream to spur entrepreneurship.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->&#8220;I think in the short term, there&#8217;s this big concentration of AI in the US. But over the next five-10 years, AI will have a massively democratising effect on the creation of new companies. Small founders and entrepreneurs will be numerous and the downstream effect will be amazing for places like India and the Asia-Pacific,&#8221; Shailendra Singh, managing director of Peak XV Partners which invests in AI start-ups, told the BBC.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Mr Singh says India is seeing a surge in AI-powered consumer apps, with AI startup investments doubling from last year.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Moreover, many Indian startups are now using AI to tackle real-world challenges for millions still on the wrong side of the digital divide.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->For example, MahaVISTAAR, an AI app run by the Maharashtra government, delivers vital agricultural information in the local Marathi language, reaching over 15 million farmers.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->&#8220;The hardest places to make artificial intelligence work are also the places where it matters most. If AI can serve India&#8217;s classrooms, clinics and farms, it can serve the world,&#8221; Nandan Nilekani, the architect of India&#8217;s biometric programme, wrote in <a href=\"https:\/\/www.economist.com\/the-world-ahead\/2025\/11\/12\/ai-will-change-india-and-india-will-change-ai-says-the-chairman-of-infosys\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:The Economist;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">The Economist<\/a> magazine last month.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Some of that has already begun to happen, as apps like MahaVISTAAR and others have shown.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->AI brings new opportunities, but could disrupt India&#8217;s IT services sector, which has driven its economy and created millions of jobs over the past 30 years.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->As AI upends some of their business functions, India&#8217;s billion-dollar IT firms will become a key area of &#8220;vulnerability&#8221;, according to Jefferies.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->That vulnerability is already showing.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START -->Growth in India&#8217;s IT back offices is <a href=\"https:\/\/www.bbc.com\/news\/articles\/cx2p4nqd352o?xtor=AL-72-%5Bpartner%5D-%5Byahoo.north.america%5D-%5Blink%5D-%5Bnews%5D-%5Bbizdev%5D-%5Bisapi%5D\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:slowing;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">slowing<\/a>, stocks are underperforming, hiring has shrunk and wages have stagnated as the spectre of a new disruptor looms large.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1090901\"><!-- HTML_TAG_START --><em>Follow BBC News India on <\/em><a href=\"https:\/\/www.instagram.com\/bbcnewsindia\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Instagram;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>Instagram<\/em><\/a><em>, <\/em><a href=\"https:\/\/www.youtube.com\/@bbcnewsindia\/featured\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:YouTube,;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>YouTube,<\/em><\/a> <a href=\"https:\/\/x.com\/BBCIndia\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:X;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>X<\/em><\/a><em> and <\/em><a href=\"https:\/\/www.facebook.com\/bbcindia\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Facebook;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>Facebook<\/em><\/a><em>.<\/em><!-- HTML_TAG_END --><\/p>\n<div class=\"image-container yf-1gfnohs loader\" style=\"--max-height: 1px;\">\n<div class=\"image-wrapper yf-1gfnohs\" style=\"--aspect-ratio: 1 \/ 1; 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