OpenAI CEO recognises India as a key player in AI development

His recent visit to New Delhi illustrated this momentum, highlighting that OpenAI has tripled its user base in the country over the past year.

Artificial Intelligence scaled
FILE PHOTO: Words reading "Artificial intelligence AI", miniature of robot and toy hand are pictured in this illustration taken December 14, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

On 5 February, OpenAI’s CEO Sam Altman acknowledged India’s growing role in the AI sector, describing it as a significant market for technology development. His recent visit to New Delhi illustrated this momentum, highlighting that OpenAI has tripled its user base in the country over the past year.

In a conversation alongside Union IT Minister Ashwini Vaishnaw, Altman noted India’s emergence as OpenAI’s second-largest market globally. He stressed the innovative potential within India, having met with various industry leaders during his trip to discuss advancements across AI applications.

Two years prior, Altman had been critical of India’s capabilities in developing foundational AI models like ChatGPT, stating it was ‘totally hopeless.’ However, he has since acknowledged the progress made in AI technology and the cost-effectiveness achieved in model training, which he now believes enables India to lead in this field.

During his visit, Altman explained that developments in distillation technology are making AI models more cost-efficient. He predicted that the cost of producing intelligence units in AI is likely to decrease remarkably over the next year, potentially by a factor of ten. This efficiency could encourage broader usage and innovation in the AI industry.

He contrasted the current developments in India against China’s DeepSeek platform, which claimed to have achieved its advancements with minimal investment. Despite this competition, Altman affirmed India’s unique contributions to AI and reiterated that OpenAI considers India a vital player in the AI landscape.

Moreover, Altman discussed how reduced costs in AI model development could lessen the reliance on extensive hardware, ultimately allowing for more diverse applications of AI technology. He mentioned the implications of Moore’s Law and reiterated that advancements in this area are unprecedented.

OpenAI’s substantial financial commitments to its foundational AI models, including a projected investment of USD 500 billion in new infrastructure through The Stargate Project, further illustrate the company’s vision for the future of AI. This comes amidst the backdrop of significant market responses to rival platforms like DeepSeek, which have disrupted traditional valuation paradigms in the tech industry.

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