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India lauds Chinese AI lab DeepSeek, plans to host its models on local servers | TechCrunch

Jan 30, 2025 - techcrunch.com
India's IT Minister Ashwini Vaishnaw praised the progress of DeepSeek, a Chinese AI lab, and announced plans to host its large language models on domestic servers, marking a rare allowance for Chinese technology in India. This decision aligns with India's data localization requirements, ensuring all Indian users' data is stored and processed domestically. The models will be hosted on India's new AI Compute Facility, which boasts nearly 19,000 GPUs, including Nvidia H100 and H200 GPUs, and is set to begin operations soon. The facility will offer discounted computing services to Indian firms, with standard AI computing at a 42% discount and high-precision computing at a 47% discount.

The announcement comes amid scrutiny of DeepSeek's app in Italy over data privacy concerns and follows the release of its R1 "reasoning" model, which has stirred debates on copyright and export controls. India is also focusing on developing its own AI models, with plans for significant investment in hyperscalers and data centers. The country aims to foster a robust AI ecosystem with a common compute facility and has selected 18 AI-driven applications for initial funding. A regulatory body will be established to oversee these initiatives, using a "hub-and-spoke model" for collaboration on safety frameworks.

Key takeaways:

  • India's IT minister praised DeepSeek's progress and announced that the country's AI Compute Facility will host DeepSeek's large language models on domestic servers.
  • The AI Compute Facility in India is powered by 18,693 GPUs, offering computing services at significant discounts to firms in India.
  • India is focusing on developing its own AI models and technology, with plans for significant investment in hyperscalers and data centers over the next few years.
  • India will establish a regulatory body using a "hub-and-spoke model" to oversee AI initiatives, with a focus on open and application-focused models.
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