DeepSeek is Rising
“We’re still grappling with the challenges of deepfakes, and now China has unveiled its AI giant—DeepSeek. What does this mean for the future of AI and global tech dynamics?
The global artificial intelligence (AI) landscape witnessed a seismic shift as Chinese startup DeepSeek unveiled its generative AI model, challenging the technological dominance of American giants like OpenAI’s ChatGPT and Google’s Gemini. Unlike its US counterparts, DeepSeek is entirely open-source and operates on lower-end chips, making it a cost-effective alternative at just $5.6 million—barely 2% of OpenAI’s O1 model. By sidestepping high-end hardware, which is under US export restrictions, DeepSeek has sent shockwaves through Silicon Valley, shaking the AI ecosystem.
Despite these advancements, DeepSeek’s prospects in India remain uncertain. The country has maintained a wary stance on Chinese technology, particularly following the 2020 border clashes. This geopolitical tension has already led to the banning of Chinese apps such as TikTok and restrictions on telecom equipment from companies like Huawei and ZTE. As a result, Indian firms developing AI applications are likely to remain reliant on US technologies and Nvidia’s graphics processing units (GPUs), despite growing concerns over technological dependency.
The DeepSeek Disruption
DeepSeek’s appeal lies in its affordability, accessibility, and independence from high-end computing resources. The model’s open-source nature makes it a lucrative option for businesses and developers seeking cost-effective AI solutions. However, concerns over security, data sovereignty, and geopolitical ramifications loom large.
The security risks stem from potential data transfer to external servers, a challenge that applies to all generative AI models, including ChatGPT. While local deployment could mitigate risks, trust remains a key issue.
India’s AI Challenge: Dependence vs. Self-Reliance
India’s AI ambitions are at a crossroads. While global AI competition intensifies, India faces the dual challenge of ensuring technological sovereignty while keeping pace with AI advancements. The government’s efforts to bolster domestic compute infrastructure and large language models (LLMs) are in early stages, with policy discussions underway.
The question of data governance is equally critical. The recently enacted Digital Personal Data Protection (DPDP) Act, along with anticipated rules on cross-border data flow, could impose further restrictions on AI models relying on external infrastructure. Data localization requirements may hinder the adoption of models like DeepSeek if they require data transfers to China, adding another layer of complexity for Indian firms.
The Geopolitical AI Race and India’s Position
The AI race is not just about technological advancements but also about geopolitical influence. The US, through initiatives like the $500 billion Stargate project and export controls on high-end GPUs, is actively shaping the global AI landscape. The restrictions on advanced Nvidia chips, including the A100 and H100 series, have already impacted China’s AI ambitions, pushing Chinese firms to develop alternatives like DeepSeek.
For India, this intensifying AI arms race signals a crucial moment to invest in indigenous AI capabilities.
The Path Forward: Strengthening India’s AI Ecosystem
While India has ambitious plans for developing its AI capabilities, execution remains a challenge. Building an independent AI ecosystem requires substantial investment in research, compute infrastructure, and regulatory frameworks that encourage innovation while safeguarding national security.
One immediate step is enhancing India’s compute infrastructure. The country must invest in high-performance computing (HPC) resources to support large-scale AI training, reducing reliance on foreign GPUs. Collaborations between academia, industry, and government bodies can accelerate the development of indigenous LLMs, customized for India’s linguistic and socio-cultural landscape.
Furthermore, policies must strike a balance between fostering innovation and addressing security concerns. The voluntary ethics code under development should provide clear guidelines on the adoption of foreign AI models, ensuring that companies using solutions like DeepSeek implement stringent data governance practices.
India Must Secure Its AI Future
DeepSeek’s rise underscores a broader reality—AI is no longer just about technology; it is a battleground for economic and geopolitical dominance. For India, the choice is clear: either remain dependent on external AI providers, whether from the US or China, or take decisive steps toward technological self-sufficiency.
If India fails to act now, it risks falling behind in the AI revolution, ceding control over critical digital infrastructure. To truly embrace AI’s potential, India must prioritize indigenous AI development, ensure secure data governance, and build an ecosystem that aligns with its national interests. Only then can India assert its position as a global AI leader, rather than a passive consumer in the unfolding AI era.