Debunking Common Myths: Unveiling the Truth About India’s AI Capabilities

During a visit to India last June, OpenAI CEO Sam Altman made a bold statement. He suggested that it would be “totally hopeless” for India to compete with Silicon Valley in developing large language models (LLMs). He advised Indian engineers to focus on simpler projects instead. Similarly, industry leaders like Nandan Nilekani and NR Narayana Murthy have expressed doubts about India’s current capacity to create these advanced AI systems. They point to issues like a lack of large datasets and structured problem-solving approaches as significant barriers.

However, this perspective may underestimate India’s true potential. For example, Tech Mahindra’s Project Indus demonstrates that creativity and determination can lead to success. Under the leadership of former CEO CP Gurnani, the company developed an Indian LLM with less than $5 million. This model understands and generates text in 40 local languages and dialects. It highlights a crucial gap—language accessibility for India’s diverse population—without relying on vast financial resources like many Silicon Valley giants do.

Gurnani’s achievement challenges the idea that building effective LLMs requires enormous funds. Instead, it shows that local focus and innovation can lead the way. India has a history of accomplishing remarkable feats, such as the Indian Space Research Organisation’s low-cost Mars mission and Jio’s telecom revolution. These examples prove that limits can drive creativity, not hinder it.

Arvind Srinivas, CEO of Perplexity AI, echoes this belief. He is investing significant resources to boost the development of local AI technologies. With his experience in building a leading AI company in Silicon Valley, he draws comparisons to India’s space achievements, suggesting that with the right vision, India can also shine in AI.

During my own journey, I faced similar skepticism when moving my company, Vionix Biosciences, to India. Many in Silicon Valley doubted India’s potential for innovation in medical diagnostics. They pointed to the failure of Theranos and claimed that success was impossible with a limited budget in “backward” India. Yet, I chose to focus on opportunities instead of limitations, investing my retirement savings in what I believed was possible. And India delivered.

Thanks to the expertise at IIT Madras and collaboration with scientists at AIIMS, we created a diagnostic platform that exceeds expectations. This technology uses non-thermal plasma-based ionization and AI to analyze organic and elemental matter quickly and affordably. Unlike traditional methods, it eliminates the need for costly materials and controlled environments.

Initially focused on healthcare, I’m now repurposing this technology to address India’s water toxicity crisis, starting with the Yamuna River. My vision expanded—now it aims to impact global sustainability.

We realized this innovation for under $2 million, showing that India could disrupt multiple industries without a massive budget.

Silicon Valley often overlooks true innovation, confusing it with money and infrastructure. In contrast, India’s challenges—ranging from limited resources to linguistic diversity—actually fuel creativity. The skeptics continue to underestimate India’s capabilities, ignoring the advancements made by its educational institutions and skilled engineers. India doesn’t need a Silicon Valley blueprint; it has its own story to tell, one that’s gaining global attention.

India’s journey is reminiscent of past underestimations, like those faced by ISRO when launching satellites on a tight budget. The successful Mars Orbiter Mission turned those doubts around. Today, many mirror that skepticism toward India’s AI aspirations.

While there are valid concerns about infrastructure, it’s clear that India can overcome these with ingenuity and collaboration. The real question isn’t whether India will achieve its goals but how quickly it will outshine expectations. Once again, the skeptics will be proven wrong.

Vivek Wadhwa is CEO of Vionix Biosciences. The views expressed are personal.

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