India’s Affordable AI Revolution: Unpacking PB Fintech’s Financial Strategies

0
27
Ashwini Vaishnaw

India Takes a Bold Step into AI Development

Happy Friday! The Indian government is accelerating its efforts to establish a foundational AI model, formally kicking off its initiatives on Thursday. Here’s what you need to know in today’s ETtech Morning Dispatch.

Key Highlights

  • Insights from Vishal Sikka on the IndiaAI mission
  • Push for a cybersecurity budget increase
  • Trifecta closes Fund-IV’s first round

AI Mission Takes Off: Chip & Model Plans on Board

India’s Minister for Electronics and IT (MeitY), Ashwini Vaishnaw, has launched the country’s ambitious venture into the global race for artificial intelligence, pledging to offer the world’s most affordable computing rate (below $1 per hour) for high-end chips that drive generative AI models.

Driving the News

Vaishnaw stated that this rate would be part of the government’s Rs 10,000 crore IndiaAI mission, for which proposals for AI model development are now being invited. The government has identified approximately six startups and developers to create the AI models within the next ten months. Last week, exclusive reports indicated India’s support for homegrown foundational models.

How Will the IndiaAI Mission Operate?

  • Commitments for 18,693 GPUs have been secured, with local companies like E2E Networks Ltd. and Jio Platforms vying to develop this capacity.
  • The average cost for an AI computing unit is currently Rs 115.85 ($1.34 per hour).
  • The government plans to subsidize 40% of computing costs to support developers and lower the barriers for AI research and development.
Screenshot

Current Landscape

This initiative arrives amid growing competition from Chinese AI startups like DeepSeek, which are gaining international recognition and posing a challenge to U.S. heavyweights such as OpenAI.

Read more: What is DeepSeek, China’s competitor to OpenAI?

DeepSeek’s Local Hosting

Vaishnaw revealed that India plans to host DeepSeek on local servers to address privacy concerns, continuing its approach initiated with Meta’s Llama model.

Also Read: DeepSeek impact: India keeps vigil as privacy fears run deep

Additional Developments

MeitY has released the L1 bidders for various AI compute units within the IndiaAI Mission GPU tender. Bidders include prominent names like Jio, NxtGen, Locuz, and E2E, with each offering access to different types of chips, such as NVidia and Intel Gaudi 2.

CrtlS has emerged as the L1 bidder for one AI compute unit, while Yotta Data Services proposed the delivery of 9,216 GPUs, followed by E2E Networks and NxtGen.


PB Fintech Reports Impressive Q3 Growth

PB Fintech

PB Fintech, the parent company of Policybazaar and Paisabazaar, reported a staggering 48% increase in operating revenue, achieving Rs 1,292 crore in Q3 of FY25, compared to Rs 871 crore the previous year.

Financial Highlights

  • Net profit surged nearly twofold to Rs 72 crore from Rs 37 crore in Q3 FY24.
  • Expenses increased by 41.2% year-over-year, totaling Rs 1,306.8 crore.
  • Employee-related costs amounted to Rs 487 crore.
  • Policybazaar processed insurance premiums worth Rs 6,135 crore, up from Rs 4,261 crore the previous year.

Additional Insights

Related Read: Insurtech startups explore the offline route.

PB Fintech is currently in discussions with the IRDAI regarding its financial accounts and received a show-cause notice in October 2024. The company noted that the resolution of this matter may impact its financial statements.


Vishal Sikka Calls for AI Initiative

Vishal Sikka

Vishal Sikka, former CTO of SAP and ex-CEO of Infosys, emphasized the importance of India’s proactive involvement in AI, urging the country not to remain a passive observer of U.S. and Chinese advancements.

On DeepSeek’s Achievements

Sikka noted the remarkable achievements of DeepSeek, which has built substantial AI models utilizing A100 GPUs and has now progressed to H800s. He believes India possesses the capability to reach similar heights, stressing that success is not limited to a select few.

India’s Vision for AI

Sikka reiterated the necessity of building foundational and sovereign AI models that leverage local data and languages, aligning with the Prime Minister’s vision to encapsulate India’s extensive historical knowledge.

Read the full interview for more insights.


Other Noteworthy Updates

Industry experts recommend the government allocate a dedicated budget for bolstering cybersecurity to protect digitized services, vulnerable sectors, and small businesses.

Trifecta Capital has announced the first close of its Rs 2,000 crore (approximately $230 million) Fund-IV targeting investment in more than 100 domestic companies.

IT management SaaS startup SuperOps has successfully raised $25 million in a Series C funding round from March Capital and others.

OfBusiness has transitioned into a public limited company, taking a significant step towards a potential IPO.


Global Picks We Are Reading

Q&A

  1. What is the IndiaAI mission?
    The IndiaAI mission is a government initiative to incentivize the development of foundational AI models utilizing local data, with a committed budget of Rs 10,000 crore.
  2. What computing costs has the Indian government promised?
    The Indian government pledged to provide high-end chips for generative AI at a cost of below $1 per hour, with a subsidy of 40% on computing costs for developers.
  3. What significant investment did PB Fintech report in Q3?
    PB Fintech reported a 48% growth in operating revenue, totaling Rs 1,292 crore in the December quarter.
  4. Who are some of the bidders in the IndiaAI Mission GPU tender?
    Prominent bidders include Jio, E2E Networks, NxtGen, and Locuz, who are competing to provide access to various high-performance chips.
  5. What strategic move did OfBusiness make recently?
    OfBusiness converted itself into a public limited company, paving the way for a potential IPO.

This revised article has been structured with clear headings and subheadings, enhancing readability and engagement for a blog or news publication. It retains the essential points while ensuring coherence and flow across the paragraphs. The Q&A section adds further clarity and addresses potential reader inquiries.

source