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India’s Artificial Intelligence Model Will Cost Less Than ₹100 Per Hour, To Be Launched Within 10 Months

India is gearing up to launch its own safe and secure indigenous AI model at an affordable cost. India’s Artificial Intelligence Model will mark a significant milestone in the country’s technological advancement. Union Minister for Electronics & Information Technology, Railways, and Information & Broadcasting, Shri Ashwini Vaishnaw, announced the development at Electronics Niketan in New Delhi.

The minister emphasized that India’s AI model is a timely step, positioning the country as a trusted technological powerhouse for ethical AI solutions. With the backing of a high-end common computing facility, the India AI Mission is advancing towards customizing AI solutions for Indian languages and contexts. Scientists, researchers, developers, and coders are actively working on multiple foundational models, and the AI model is expected to be ready within six months.

Affordable and Scalable AI Computing Power

India’s AI initiative is launching with a computation facility of approximately 10,000 GPUs, with plans to add the remaining 8,693 GPUs soon. This will significantly benefit researchers, students, and developers by democratizing access to computing at a competitive cost.

Compared to global AI models, where computation costs range from $2.5 to $3 per hour, India’s AI Model will cost less than ₹100 per hour after a 40% government subsidy.

Additionally, the mission will offer half-yearly and annual plans, making AI computing even more affordable.

Within just 10 months of the India AI Mission launch, the Ministry of Electronics & Information Technology (MeitY) has established a high-end and robust common computing facility housing 18,693 GPUs—nine times more than DeepSeek and two-thirds of ChatGPT’s infrastructure.

Ensuring AI Safety and Ethical Deployment

To ensure AI safety and ethical deployment, the Indian government is establishing an AI Safety Institute with a techno-legal approach. This institute will oversee data privacy, ethical auditing of algorithms, and the development of responsible AI strategies.

Key research projects have been launched in collaboration with prestigious institutes, focusing on:

  • Machine Unlearning (IIT Jodhpur)
  • Synthetic Data Generation (IIT Roorkee)
  • AI Bias Mitigation Strategy (NIT Raipur)
  • Explainable AI Framework (Defence Institute of Advanced Technology, Pune & Minecraft Technologies)
  • Privacy Enhancing Strategies (IIT Delhi, IIIT Delhi, IIT Dharwad & Telecom Engineering Centre)
  • AI Ethical Certification (IIIT Delhi & TEC’s Tool Nishpaksh)
  • AI Algorithm Auditing (Civic Data Labs’ Tool Parakh)
  • AI Governance Testing (Amrita Vidyapeetham & TEC)

Common Compute Facility: The Foundation for AI Development

The India AI Mission has created a Common Compute Facility, surpassing global benchmarks in record time. This shared AI infrastructure will facilitate research, model training, and algorithm development while promoting innovation.

With 18,693 GPUs (including 12,896 H100, 1,480 H200, and 7,200 MI 200 300 units), India’s computing power is significantly ahead of DeepSeek’s 2,000 GPUs and is inching closer to ChatGPT’s 25,000 GPUs. This facility will soon be operational for widespread use by academia, startups, and research institutions.

Empanelment of AI Services on Cloud

As part of its IndiaAI Mission, the Indian government approved a budget of ₹10,372 crore in March 2024 to bridge gaps in AI infrastructure. MeitY, through its IndiaAI Independent Business Division (IBD), published a Request for Empanelment (RFE) in August 2024 to enable AI services on the cloud.

Following a competitive bidding process, ten companies have been selected to provide AI computing units (GPUs):

  1. CMS Computers India Pvt Ltd
  2. Ctrls Datacenters Ltd
  3. E2E Networks Limited
  4. Jio Platforms Limited
  5. Locuz Enterprise Solutions Limited
  6. NxtGen Datacenter and Cloud Technologies Private Limited
  7. Orient Technologies Limited
  8. Tata Communications Limited
  9. Vensysco Technologies Limited
  10. Yotta Data Services Private Limited

These companies have offered AI computing units such as Intel Gaudi 2, AMD MI300X, NVIDIA H100, H200, A100, L40S, and AWS Inferentia2. The L1 bidder for each category will be empaneled first, with other bidders eligible if they match the L1 bid.

Establishing the IndiaAI Safety Institute

To address AI risks and safety challenges, the government is setting up the IndiaAI Safety Institute under the Safe and Trusted AI Pillar of the IndiaAI Mission. This institute will collaborate with academia, startups, industries, and government agencies to ensure the security and trustworthiness of AI.

The IndiaAI Safety Institute will focus on indigenous AI research, using Indian datasets tailored to India’s socio-economic, cultural, and linguistic diversity. Research themes include:

  • Watermarking & Labelling
  • Ethical AI Frameworks
  • AI Risk Assessment & Management
  • Stress Testing Tools
  • Deepfake Detection Tools

India’s Artificial Intelligence Model: Built for Local Contexts

Over the past 18 months, India has been building a robust AI framework tailored to Indian linguistic and cultural contexts. The country’s foundational AI models aim to eliminate biases, ensure inclusivity, and promote fairness. Leading researchers and developers are working to complete multiple foundational models within 8-10 months.

India’s AI model will support multiple Indian languages, addressing challenges unique to India’s demographics and enabling inclusive AI adoption. Experts believe it will boost innovation and provide cost-effective solutions for Indian users.

AI Applications to Benefit Citizens

The India’s Artificial Intelligence Model Mission focuses on AI-driven applications in agriculture, healthcare, weather forecasting, and disaster management, aiming to address critical challenges and improve the lives of millions. AI will play a crucial role in tackling climate change, supporting individuals with learning disabilities, and enhancing agritech solutions. Key areas of impact include soil health monitoring to assist farmers, advanced weather and cyclone prediction for disaster preparedness, significant advancements in healthcare, optimization of railway ticketing systems for efficiency, and industrial automation to boost productivity and innovation.

Affordable Compute Facility for AI Development

India’s AI Compute Facility is being offered at an affordable rate. While global AI models charge $2.5–$3 per hour, India’s compute cost is ₹115.85 per GPU hour. With a 40% government subsidy, the cost reduces to less than ₹100 per hour. High-end compute will be available at ₹150 per hour, with competitive half-yearly and annual pricing plans.

The initiative has received global recognition, including appreciation at the Davos Summit, reinforcing India’s credibility as a trusted AI hub.

Call for Proposals to Build India’s Artificial Intelligence Model

The Union Minister also launched a Call for Proposals to support the development of foundational AI models, inviting startups, researchers, and entrepreneurs to create India-centric AI solutions, including Large Multimodal Models (LMMs), Large Language Models (LLMs), and Small Language Models (SLMs). These models will be trained on Indian datasets to ensure cultural and linguistic relevance. Proposals will be evaluated based on team expertise, innovative approach, use case feasibility, ethical compliance, and financial viability. Funding support includes grants, AI compute credits, and co-financing opportunities through venture capitalists, angel investors, and government grants, fostering a robust ecosystem for AI innovation in India.

India’s AI Future: A Global Powerhouse in the Making

India’s AI roadmap aligns with its semiconductor mission, with over $30 billion invested in semiconductor R&D. The government is strategically planning AI infrastructure to boost industrial and societal applications beyond chatbots and image generation.

As India advances in democratizing AI, it is set to become a global AI powerhouse, shaping the future of artificial intelligence for economic and technological progress.

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