India IT minister praises DeepSeek’s low-cost AI, compares it with own investment approach

India’s IT minister has praised Chinese startup DeepSeek for shaking up the sector with its low-cost AI assistant, likening its frugal approach to his government’s efforts to build a localized AI model.

India announced a $1.25 billion AI investment in March, dubbed IndiaAI mission, which includes funding for AI startups and developing its own AI infrastructure.

“Some people question the amount of investments the government has committed in (IndiaAI mission). You have seen what DeepSeek has done? $5.5 million and a very very powerful model. Because, the use of brain,” Ashwini Vaishnaw said on Tuesday at an event in the eastern state of Odisha.

DeepSeek has triggered a dramatic rethink on artificial intelligence spending around the world, claiming it took just two months and cost under $6 million to build an AI model using Nvidia’s less-advanced H800 chips.

Downloads of its app recently surpassed OpenAI’s ChatGPT on Apple’s App Store, while the cost and performance of its tools upended industry beliefs that China was years behind US rivals in the AI race.

Vaishnaw’s statement appeared to target comments made by OpenAI’s Sam Altman during a visit to India last year, when he cast doubt on the possibility of an Indian team being able to build a substantial model in the OpenAI space with a $10 million budget.

Microsoft, Meta CEOs defend hefty AI spending after DeepSeek stuns tech world

“The way this works is we’re going to tell you it’s totally hopeless to compete with us on training foundation models. You shouldn’t try. And it’s your job to like try anyway. And I believe both of those things,” he said, comments which are now in focus again on online platforms such as X after DeepSeek’s success.

Altman is due to visit India again on February 5, just as his company is currently locked in a court battle in the country with digital news and book publishers over copyright breaches.