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In today’s newsletter:

• PM Modi calls for open-source AI systems at Paris AI summit
• Market downturn hits Groww, Zerodha, Angel One 
• More exits at Peak XV

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AI must be open, green, and people-driven

• That was the message from Prime Minister Narendra Modi at the Paris AI Action Summit

Speaking at the summit in Paris, PM Modi called for open-source AI systems built on unbiased datasets.

• Modi said this is required for trust, transparency, and sustainability

He also called for democratising AI through people-centric applications while urging global leaders to address cybersecurity, disinformation, and deepfakes.

Describing the current moment as the “dawn of the AI age,” Modi highlighted that AI has the potential to shape humanity’s future. 

“AI is already re-shaping our polity, our economy, our security and even our society. AI is writing the code for humanity in this century,” Modi said.

Modi also shared India’s ambitious plans to develop a large-language model (LLM) tailored to the country’s diversity, tapping into the nation's rich pool of AI talent.

Modi reiterated concerns over AI’s energy consumption, saying AI’s future must be powered by green energy.

“Sustainable AI isn’t just about clean power—it must also be efficient in size, data needs, and resource requirements,” Modi said at the Grand Palais in Paris.

He also pushed back against fears of AI-driven job losses, saying that history has taught us that while technology changes the nature of work, it does not eliminate jobs.

“Today, we need to invest in skilling and re-skilling our people for an AI-driven future,” Modi said.

On the ongoing debate around data localisation, Modi said technology must be rooted in local ecosystems to be truly effective.

Dig deeper

The bull run for the stock brokers is coming to an end coinciding with a downturn in Indian markets, which have seen four straight months of decline.

• Zerodha, the country’s second-largest broking firm, has seen its number of active investors decrease for two consecutive months

The story is similar for most brokers, who have seen their customer additions gradually fall from the all-time highs of June 2024, month after month.

This could not have come at a more inopportune time for Bengaluru-based Groww, which is set to go public with an initial public offering (IPO) at a valuation of around $7–8 billion.

• Its new investor additions have dropped from 5.5 lakh in June 2024 to around 75,000 last month

The broader market conditions are adding to the pressure. Several startups that listed over the past few years are already trading below their IPO prices.

• This could negatively impact Groww's valuation

The current financial year has been a roller coaster for brokerage houses as the markets regulator Sebi has clamped down on Futures and Options (F&O) trading citing excessive speculation. These restrictions came into effect late last year.

• Initial signs suggest a 30-40% drop in trading volume
  
  
• Brokers generate 30-40% of their revenue and an even higher share of their profits from the F&O segment

Dig deeper

The venture capital jungle has its own kingmakers—but what happens when they leave the throne?

Two of Peak XV Partners’ most influential investors—Shailesh Lakhani and Abheek Anand—are stepping away from their full-time roles as Managing Directors.  

• The exits mark a major shift for the firm, which has been reshaping itself since parting ways from Sequoia Capital in 2023

A 17-year veteran at the VC firm, Lakhani made some of Peak’s most lucrative bets—including a 10x return on Minimalist (getting sold to Hindustan Unilever).

• Other winners under his belt: Ixigo, Healthkart, Truecaller, Zetwerk, and Capillary Technologies, the last two gearing up for IPOs

While Lakhani’s next move remains unknown, Anand, who led investments in Southeast Asia, is returning as a founder. 

• He’s setting his sights on AI and emerging tech, heading back to San Francisco

While both will retain board positions at select portfolio companies, they won’t be actively investing at Peak XV anymore.

Lakhani and Anand’s departure isn’t an isolated event—Peak XV has seen a series of high-profile exits. 

• Piyush Gupta, a former MD, left in April last year to launch a secondaries fund
  
  
• Anandamoy Roychowdhary, a Surge Partner, also exited in November

The timing is interesting, coming just months after Peak XV tightened its investment approach, having cut its $2.85 billion fund size by 16% last year.

• It also revised partner payout structures, taking a more cautious stance on venture investments.

Find out more

• Anthropic launched the Anthropic Economic Index to track AI's impact on labor markets and the economy, finding that AI usage is currently concentrated in software development and technical writing, with over a third of occupations using AI in at least a quarter of their tasks.

• US Vice President JD Vance warned Europeans that what he called their excessive regulation of artificial intelligence could strangle the technology, and rejected content moderation as "authoritarian censorship."

In the latest chapter of the Musk vs. OpenAI saga, Elon Musk and a group of investors have made a jaw-dropping offer of $97.4 billion to acquire OpenAI. 

That's enough to buy, like, a lot of Teslas

In a cheeky response on Musk's own platform, X (formerly Twitter), OpenAI Sam Altman humorously turned down the offer with, "No thank you, but we will buy Twitter for $9.74 billion if you want."

• Musk and Altman were once partners in building OpenAI, but now they are bitter rivals

The fight over the future of artificial intelligence is no longer behind closed doors—it’s playing out on social media, in boardrooms, and even in politics.

Find out more

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