OpenAI CEO Sam Altman Highlights India’s Role in Artificial Intelligence Development

On his second trip to India in two years, OpenAI CEO Sam Altman highlighted the country’s potential to lead in artificial intelligence, particularly in creating small and reasoning models. With rising competition from Google’s Gemini, DeepSeek, and other AI players, along with increasing global scrutiny over AI’s influence, Altman’s visit to India underscores the nation’s growing importance in the AI landscape.

India’s Leadership in Building Reasoning Models

Altman stated, “India should be a leader in building small models, especially reasoning models,” pointing out that while the costs associated with AI training are forecasted to escalate rapidly, the resulting intelligence and revenue are expected to increase substantially. He mentioned that current AI models are already nearing the capability to effectively tackle critical issues such as healthcare and education—areas where India stands to benefit significantly from AI-driven advancements.

OpenAI’s Growing Presence in India

India has become the second-largest market for OpenAI, reflecting the swift adoption of AI-powered technologies across the country. Altman encouraged India to “do everything within the AI stack,” suggesting that the nation should not only utilise AI but also actively engage in constructing and enhancing various components of the AI value chain.

Recognizing Innovation in Indian Startups

Altman expressed admiration for the achievements of Indian startups, researchers, and developers in AI innovation, noting, “It’s amazing to see what India has done so far.”

Training Costs and Future Infrastructure Needs

Addressing the rising expenses involved in training AI models, Altman remarked that although costs remain high, the cost per unit of AI intelligence is decreasing dramatically, with a reduction factor of 10 every year. Nonetheless, he countered the idea that this decline would lessen the demand for AI hardware, suggesting that the need for AI infrastructure will persist and likely intensify as AI usage expands.

Clarifying Focus on Foundational Models

He further clarified that his previous comments regarding foundational models had been misconstrued, possibly referring to earlier discussions about whether India should concentrate on developing its own large-scale AI models or utilise already available ones.

Altman’s Asia-Pacific Tour Conclusion in Delhi

Delhi served as the final destination of Altman’s Asia-Pacific tour, where he met with policymakers, AI researchers, and business executives. His visit coincides with India’s escalating AI ambitions, marked by initiatives such as Bhashini (for AI-driven language translation), government-supported AI computing infrastructure, and an increasing emphasis on AI regulation.

Focus on AI Distillation and Model Efficiency

While OpenAI continues to work on AI distillation to create smaller and more efficient models, Altman acknowledged that advancements in this area have not yet been “incredible.” His statements indicate that cost-effective, smaller models could represent a crucial domain in which India can excel, aligning perfectly with the nation’s aspirations in AI.