Modi pitches India as affordable AI hub at summit, drawing $200 billion in investments

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Prime Minister Narendra Modi positioned India as a hub for affordable and scalable artificial intelligence at the India AI Summit in New Delhi. The event drew over a dozen heads of state and tech executives, with more than $200 billion in AI investments expected over the next two years. The summit faced organizational challenges and a surprise withdrawal by Bill Gates, but showcased India's ambition to bridge advanced economies and the Global South in AI development.

India Positions Itself as Cost-Effective AI Powerhouse

Prime Minister Narendra Modi used the India AI Summit in New Delhi to assert India's role in the global artificial intelligence landscape, presenting the nation as a hub for affordable and scalable AI innovation. "Design and develop in India. Deliver to the world, deliver to humanity," Modi told the gathering of world leaders, technology executives, and policymakers at what organizers billed as the largest AI conference held in a developing nation

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. The event gave Modi a platform to challenge the AI race largely dominated by the US and China, showcasing India's vast, tech-savvy population and deep engineering talent as evidence that it can offer an alternative to AI models shaped by major global technology firms

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Massive AI Investments Signal Industry Confidence

Several major companies announced billions of dollars in AI investments in India during the summit. Technology Minister Ashwini Vaishnaw revealed that more than $200 billion in AI investments are expected over the next two years

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. In one of the largest deals unveiled, OpenAI partnered with Indian conglomerate Tata Group to build a data center starting at 100 megawatts of capacity, with plans to scale up to 1 gigawatt—a facility that can cost between $35 billion and $50 billion at the upper end

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. Billionaire Gautam Adani's group also announced plans to invest $100 billion by 2035 to build AI-ready data centers, underscoring the scale of private-sector backing for Modi's ambition

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. These investments build on earlier commitments from Microsoft's $17.5 billion investment over four years, Google's $15 billion over five years, and Amazon's $35 billion pledge by 2030

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Democratization of AI Emerges as Central Theme

Modi emphasized the need to democratize AI, stating that "some countries and companies think AI is a strategic asset. But India believes AI will be helpful for the world only if shared, and codes are open"

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Source: ET

Source: ET

This vision resonated with other speakers at the summit. U.N. Secretary-General António Guterres called for a $3 billion fund to help poorer countries build basic AI capacity, including skills, data access, and affordable computing power. "The future of AI cannot be decided by a handful of countries, or left to the whims of a few billionaires," Guterres said, stressing that AI must "belong to everyone"

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. India is using the summit to position itself as a bridge between advanced economies and the Global South, with Indian officials citing the country's digital ID and online payments systems as a model for deploying AI at low cost, particularly in developing countries

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Global Leaders Debate AI Governance and Cooperation

Over a dozen heads of state, including leaders from France and Brazil, attended the summit this week, along with top executives from AI heavyweights such as OpenAI, Alphabet Inc., and Anthropic PBC

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Source: ET

Source: ET

French President Emmanuel Macron spoke before Modi, highlighting India's AI advances and their potential to transform sectors ranging from agriculture and healthcare to transportation. "The Indian model is truly revolutionary, providing solutions for everyone in the country," Macron said about India's digital journey, citing examples from 200 million Indian farmers receiving advice in their own dialect to AI diagnostics for rural clinics

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. Macron also vowed to protect children from "digital abuse" during France's presidency of the G7 and defended Europe's approach to AI regulation, saying "Europe is a space for innovation and investment, but it is a safe space, and safe spaces win in the long run"

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. OpenAI's CEO Sam Altman said the world should "urgently" regulate AI, warning that centralizing the technology in one company or country "could lead to ruin" .

Homegrown Innovation and Sovereign AI Models

Modi's remarks came amid a broader push to spur homegrown innovation. A day earlier, Bengaluru-based startup Sarvam AI unveiled a model it said is better tailored to India's diverse languages and cultural contexts than tools such as ChatGPT and Claude

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Source: ET

Source: ET

The government has been promoting sovereign AI models and encouraging makers to roll out services locally. "India has diversity, demography, as well as democracy. Whichever AI model succeeds in India, that can be deployed globally," Modi said in his speech

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. With nearly 1 billion internet users, India has become a key market for global technology companies expanding their AI businesses

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. However, the country still lags in developing its own large-scale AI model like U.S.-based OpenAI or China's DeepSeek, highlighting challenges such as limited access to advanced semiconductor chips, data centers, and hundreds of local languages to learn from

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Summit Faces Organizational Challenges and High-Profile Withdrawal

The summit opened Monday with organizational glitches, as attendees and exhibitors reported long lines and delays, and some complained on social media that personal belongings and display items had been stolen, though organizers later said the items were recovered

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. Problems resurfaced Wednesday when a private Indian university was expelled from the summit after a staff member showcased a commercially available Chinese-made robotic dog while claiming it as the institution's own innovation

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. The setbacks continued Thursday when Microsoft co-founder Bill Gates withdrew from a scheduled keynote address. No reason was given, though the Gates Foundation said the move was intended "to ensure the focus remains on the AI Summit's key priorities"

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. The Bill Gates withdrawal came as he faces questions over his ties to late sex offender Jeffrey Epstein . Despite these challenges, the summit succeeded in drawing attention to India's ambitions and sparked important conversations about AI governance and cooperation, AI capacity building, and ensuring AI for Global South nations remains accessible and inclusive.

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