On January 20, President Trump began his second term by signing an executive order that canceled a previous order from President Biden concerning Artificial Intelligence (AI). Biden believed AI needed oversight due to its potential risks, while Trump felt those regulations weren’t necessary.

Just a day later, Trump announced a massive $500 billion investment from OpenAI, Oracle, and SoftBank to build AI infrastructure, including data centers through a partnership they called Stargate. He claimed this investment would create 100,000 jobs right away, with the first data center currently under construction in Texas.
While Trump celebrated, the tech leaders present praised him. Interestingly, Elon Musk, who was not there, criticized the announcement, acting much like a teenager left out of an event.
The reaction shows how some tech leaders are quick to align with Trump, possibly believing it’s a smart move. Under his leadership, the U.S. might push ahead in AI with a strong nationalism. This approach raises concerns about the focus shifting from the potential misuse of AI to using it as a tool for U.S. advantage globally. Many now see AI as the next race for supremacy among nations.
Meanwhile, China made its move with the launch of DeepSeek R1, an app that quickly gained popularity for its performance, reportedly outperforming ChatGPT. In no time, it became the most downloaded free app in the App Store. This low-cost venture grabbed attention, as it’s claimed to have been developed using relatively less data and at a fraction of the typical cost.
Amidst discussions about chip availability, rumors suggested that DeepSeek might be utilizing advanced chips previously restricted by the U.S. However, despite these restrictions, whispers suggested that some loopholes existed allowing access to cutting-edge chips. By January 27, DeepSeek’s popularity led to it experiencing a cyber-attack due to its rapid rise.
In the American landscape, tech leaders have often argued that AI drives demand across industries, benefitting hardware and software developers. Despite its promise, AI was seen as a complex field, one that needed extensive expertise. But DeepSeek’s approach challenged that notion, proving that innovation can sometimes come from unexpected places, leading to significant losses for American tech stocks as they reacted to this sudden shift.
China’s quick advancements in AI were expected, but the speed at which DeepSeek achieved success caught many off guard, demonstrating that nimble innovation might outpace traditional giants like those in the U.S. This puts even more pressure on relations between the U.S. and China, as the AI landscape becomes increasingly competitive.
This situation raises an essential question: Does India have a clear vision for its role in AI? China has already shown that agility and creativity can lead to success, which should inspire India to explore its capabilities in this space.
Innovative growth often thrives in countries where both private and public sectors collaborate. However, in India, there seems to be a lack of joint initiatives in AI. Recent calls by industry groups in India, like Nasscom, for a “deep tech fund” suggest that there is a desire for government support, but the outcome remains uncertain.
Despite the Indian government’s various initiatives to promote AI, results are hard to find. Their dedicated AI portal lists many startups and articles but lacks concrete success stories, resembling an aggregator more than a proactive force in AI innovation.
Reflecting on India’s past, there was a time when the country, after being denied advanced technology from the U.S., turned that setback into an opportunity by creating its supercomputer, PARAM. This history shows that determination can lead to remarkable achievements, and similar innovations are expected from India today.
Currently, the Indian government has allocated significant funds for innovation, but without tangible outcomes, skepticism lingers among the public and media. The private sector, while praised for its service prowess, faces scrutiny over its lack of groundbreaking innovation. Much of India’s advancement in tech seems to come from foreign companies relocating and harnessing local talent.
The cycle of seeking to maintain the status quo risks stifling progress. The commentary from industry leaders suggesting long work hours for success highlights the hesitance to deviate from established norms. Such a mindset can prevent true leadership in the tech sector.
While it’s commonly believed that talented individuals leave India for better opportunities abroad, innovation actually springs from diverse places, including grassroots initiatives. Examples of AI being utilized to tackle real-life challenges in India further illustrate the potential for impactful progress at the community level.
As nations continue to navigate the complexities of AI and technology, the choice lies with us to imagine and build solutions that transcend borders. With the landscape evolving, India’s ability to adapt will play a crucial role in its future amidst global competition.
Eshwar Sundaresan is an author and freelance journalist, sharing insights on technology and society.
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