Aravind Srinivas, CEO and co-founder of Perplexity AI, has said India must build its foundational AI models to stay competitive on the global stage, stressing on the need for the country to develop an artificial intelligence infrastructure and talent base.
The comments come at a time when the government is stepping up efforts to build large language model-based AI system on the lines of OpenAI’s ChatGPT and China’s DeepSeek chatbots.
“It’s essential to have the skill set to compete on the same benchmarks as everyone else. India needs the capability to train models independently, which requires both infrastructure and talent,” Srinivas said on February 27 at an event to announce Perplexity's partnership with Paytm.
“The next generation of engineers should have something to aspire to. Just like India’s low-cost satellite launches have been an inspiration, the same should be true for building world-class AI models."
Clashing views on AI development
Srinivas' statement is a reiteration of his position after he publicly disagreed with Infosys co-founder Nandan Nilekani, who argued that Indian startups should focus on building practical AI applications rather than spending billions to develop LLMs, leaving model training to tech giants in Silicon Valley.
Indian-origin CEO says Nandan Nilekani is 'awesome' but also 'wrong' for his stance on AI
"He's wrong on pushing Indians to ignore model training skills and just focus on building on top of existing models. Essential to do both," Srinivas had posted on X on January 21.
Founded in 2022 by Srinivas, Andy Konwinski, Denis Yarats and Johnny Ho, the San Francisco-based Perplexity is a startup that offers free AI search engine that lets users type their query and it searches the internet to get a precise and well-researched answer, competing with giants like ChatGPT and Google's Gemini.
India’s AI update
In January, Electronics and IT minister Ashwini Vaishnaw announced that six companies would develop indigenous foundational AI models under the IndiaAI Mission. These models will be tailored to the Indian context, languages, and culture while minimising biases.
The government has procured 18,693 graphics processing units (GPUs) under the IndiaAI Mission, which was approved in March 2024 with an outlay of Rs 10,300 crore, the minister said on January 30. Of these, 10,000 GPUs are ready for immediate use and the rest would be deployed gradually.
GPUs are vital for AI as they can handle many tasks at once, making them much faster than regular computer processors. This speed is crucial for training and running AI models, which need to process large amounts of data quickly.
On meeting PM Modi: ‘Deeply aware of AI’s potential’
Srinivas, who recently met Prime Minister Narendra Modi, said his was impressed with his deep understanding of AI and its implications for India.
“I got more time to spend with him, and what amazed me was his level of preparedness. He was well aware of different AI models, their strengths, and weaknesses,” Srinivas said.
“He had special insights on how AI can reference India’s ancient scientific knowledge — our Vedic mathematics, literature, and other traditional tech — and bring it into the modern era. The world already respects India for its contributions like the invention of zero, and PM wants AI to showcase more of what India got right.”
Modi also said AI should not just be used to complete tasks faster but should foster genuine curiosity among users, he said. “He wants AI to work across all Indian languages with minimal learning barriers,” Srinivas said.
Working with IITs: ‘Aiming for a million sign-ups by mid-March’
As part of its expansion in India, Perplexity recently offered free access to its pro version to all students, faculty and staff of Indian Institute of Technology, Madras (IIT-Madras).
“We ran an inter-college program in the US last year, and now we’re doing the same in IITs. The goal is to understand the nuances, learn from mistakes, and refine our approach,” Srinivas said.
“We’re already working with student groups on WhatsApp and targeting a million sign-ups by mid-March. Our vision is simple: no student should have to pay for the Pro version of Perplexity. We want to make AI-driven knowledge accessible to all students in India.”
Also read: AI-based products can become Paytm's profit drivers in a year or two: Vijay Shekhar Sharma
Partnership with Paytm and other payments apps
The partnership with Paytm is just the beginning of Perplexity’s India push, the founder said. The AI startup will offer a search engine on Paytm app, a step towards expanding its presence in India.
“India is one of the most curious countries, and Perplexity is a solution to that curiosity,” Srinivas said. “Working with Paytm allows us to integrate AI across different sectors, ensuring accessibility for all.”
Speaking on building new use cases, he said, "Like we have shopping feature on Perplexity. We are figuring out a way for users to pay via Paytm app and shop. It will be interesting to figure out and take that to other payments apps and rest of the world."
On pricing for India market, he said, "We’re figuring out ways to make our product more affordable and accessible,” he added, hinting at local payment integrations along with going beyond the current $20 price tag.
"Give us a few weeks. We work with Stripe API right now, it may be difficult to have Paytm UPI right now, but hope to figure out a way soon," he added.
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