India’s $30 Billion AI Push: DeepSeek Hosting, AI Compute, and Techno-Legal Governance

India has officially entered the global AI race with an ambitious $30 billion investment, announced by Ashwini Vaishnaw, Minister of Electronics and Information Technology. The announcement highlights India's commitment to AI infrastructure, foundational models, and applications, with a four-year subsidy program aimed at boosting growth. This move positions India as a key player in AI while ensuring data privacy, security, and respect for intellectual property (IP) rights.

AI Compute & Infrastructure

A major highlight of this initiative is the establishment of Common Compute, with a total of 18,693 GPUs, making India a competitive force in AI computing resources. This initiative will significantly lower the cost of AI compute, bringing it down to ₹115.85 per GPU hour, compared to the global standard of $2.5-$3 per GPU hour. For high-end computing, the cost is projected to be around ₹150 per GPU hour for running the best LLM.

To further enhance India’s AI capabilities, the government will host DeepSeek on Indian servers, similar to how LLaMA was previously run. This ensures data privacy and security while making India a self-reliant hub for AI research and development.

Foundational Models & AI Applications

The government has issued a call for proposals to create foundational AI models, with six major players expected to take the lead in this initiative. This move is expected to reduce dependency on foreign technology and drive local innovation.

Additionally, 18 AI applications have been developed across key domains, including climate change, agriculture, and learning disabilities. These applications showcase India’s focus on leveraging AI for social and economic impact.

AI Safety & Regulatory Measures

To ensure the safe and ethical development of AI, the government is launching a dedicated AI Safety Institute and supporting eight research projects focused on AI risk mitigation. This aligns with India’s techno-legal approach, balancing technological advancement with robust legal frameworks.

By respecting IP rights and fostering a regulated yet innovation-friendly environment, India is establishing itself as a trusted AI destination. This approach aligns with global efforts to address AI governance and safety concerns.

Support for Startups, Researchers, and Students

A 40% subsidy will be provided to startups, researchers, and students, further reducing the cost barrier and encouraging innovation in AI development. This subsidy will play a crucial role in making advanced AI tools accessible to a wider talent pool.

A Government That Runs Like a Tech Startup

One of the most intriguing aspects of this initiative is the vision to run the government like a tech startup. This means agile decision-making, rapid execution, and a strong focus on innovation. With AI deeply integrated into governance, India aims to enhance efficiency and transparency across various sectors.

Final Thoughts

India’s AI strategy is a game-changer, providing a structured and subsidized environment for AI development while addressing privacy, security, and legal concerns. By building its own foundational models, investing in AI compute, and fostering innovation through a techno-legal framework, India is setting a strong precedent for responsible AI growth.

This initiative marks a significant step in India’s journey to becoming a global AI powerhouse, leveraging its trusted status in technology and IP protection. The next few years will be critical in seeing how these policies translate into real-world impact, but the groundwork has been firmly laid.

Sources

• Official Announcement: YouTube Video

• DeepSeek Source Paper : https://github.com/deepseek-ai/DeepSeek-R1

• DeepSeek Coder : https://github.com/deepseek-ai/DeepSeek-Coder

• gpt4free open source: https://github.com/xtekky/gpt4free