One quick thing: Homegrown Sarvam AI unveils OpenHathi, the first Hindi large language model 

In today’s newsletter: 

• India trusts AI, but cautiously 
• Ride-hailing's zero-commission conundrum
• Indian startups' year-end funding bonanza

Event alert: CNBC TV18 & Moneycontrol will be hosting the most definitive summit on Artificial Intelligence with top global and Indian voices on December 16th in Bengaluru. Click here to register and get access to the 'Palo Alto Networks presents CNBC-TV18 & Moneycontrol Global AI Conclave'.

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In contrast to Western governments focusing on the risks of AI, the Indian establishment is seeking a nuanced approach, balancing innovation with regulation.

India will restrict access to its datasets for only those AI models deemed trustworthy, said Union Minister Rajeev Chandrasekhar today.

• While the exact definition of "trusted" is not finalised, a framework will be created drawing on both existing and new laws

• Chandrasekhar stated that this measure has become imperative due to instances of misuse of the country's data by certain regions

At the Global Partnership on Artificial Intelligence (GPAI), Chandrasekhar urged the grouping's 29 member countries to collaborate on setting concrete goals. 

• He urged GPAI to reach a consensus on a common set of regulatory principles for AI within the next 6-9 months

• Chandrasekhar warned that AI regulation wouldn't work unless it is based on a global consensus

Highlighting the potential dangers of AI and its ability to pose a significant threat to the 21st century, Prime Minister Modi yesterday urged members of the GPAI to collaborate on developing a global framework for responsible AI.

• This framework would establish guardrails to ensure ethical and safe development and deployment of AI technology

Find out more

Namma Yatri, the auto-hailing platform that launched in November 2022, turned heads with a revolutionary promise. What, you ask?

• Zero-commission charges for both riders and drivers

However, maintaining this status quo is turning out to be a challenge.

Namma Yatri, the Ola-Uber challenger, has been in the news lately after the drivers’ union ARDU parted ways with the platform.

• A key factor in the rift was Namma Yatri's decision to modify its zero-commission model, introducing a "subscription plan" for drivers, albeit avoiding the term "commission"

Under this plan, implemented in September 2023, drivers have two options: pay a daily fee of Rs 25 for unlimited rides or pay Rs 3.50 per ride with no further charges after completing 10 rides.

Namma Yatri started on the right note; however, running an app of this magnitude requires money and a continuous infusion of it. 

Remember, the app has gained significant popularity within a year and has onboarded more than 1.09 lakh registered drivers in Bengaluru. 

• As adoption grows, costs, such as those for quality engineering, customer support, R&D, marketing, and even for the maps used on the app, need to be covered

Mobility experts point out that unless the app solves for sustenance and comes up with a solution to monetise, it might be difficult to grow in the ride-hailing space.

Dig deeper

The much-anticipated thaw might be underway in India's startup ecosystem, following the harsh funding winter. 

• In the last 24 hours, four companies have raised a total of Rs 903 crore in funding

Agritech startup Vegrow, sporting equipment company Agilitas Sports, micro-enterprise lending firm Aye Finance, and fast-fashion company Snitch have announced raising a new funding round.

• This comes at a time when monthly funding for Indian startups hit a six-year low in November

The numerous funding announcements appear to be the result of a rush to close deals before the holiday season begins and the year ends.

Among the startups that announced their rounds, Vegrow raised the largest round of Rs 383 crore led by GIC. 

• Aye Finance followed with a round size of Rs 310 crores in a funding round led by UK's British International Investment (BII).

Meanwhile, Shark Tank-famed Snitch raised Rs 110 crore and Agilitas Sports, founded by former Puma executives, raised Rs 100 crore.

Moreover, among the four rounds, Vegrow and Aye Finance secured late-stage funding in Series C and Series F, respectively.

• This follows two late-stage rounds in The Sleep Company and Biryani By Kilo last week, signalling a comeback in the segment

• Snapchat Plus subscribers can now use additional generative AI features, enabling them to create and share images based on text prompts.
  
  
• A new guidance in England and Wales allows judges to use AI for basic tasks but bans chatbots for legal research and analysis.

Imagine a world where robots decide who lives and dies in war. Scary, right? Well, that world might be closer than we think.

Israel's military is using an AI system called Habsora to target enemies in Gaza.

• This system can generate 100 bombing targets per day, compared to 50 per year using traditional methods

But are we truly ready to trust algorithms with understanding the intricacies of human conflict?

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