Sarvam AI's Vivek Raghavan says Big Tech 'dumping' free models, urges govt as first buyer

Vivek Raghavan, co-founder of Sarvam AI, has voiced concerns about the impact of foreign artificial intelligence services in India, suggesting they are being unfairly subsidized and should be classified as "dumping." He believes that the Indian government needs to act as an early adopter of domestic AI alternatives to foster local development and innovation. In a recent interview, Raghavan argued that the current state of AI offers from major global tech companies poses a significant challenge for Indian startups. He pointed out that the vast investments made by these firms allow them to provide powerful AI tools at little or no cost, making it difficult for local entities to compete. "In any other industry, spending billions or hundreds of billions and then offering products for free would be considered dumping," he stated, calling for a policy response from the government. As India ramps up its efforts to develop homegrown AI technologies through initiatives like the IndiaAI Mission, Raghavan highlighted the necessity for local models to be adopted widely, especially in public services. He emphasized that without substantial usage, these models would struggle to improve and remain competitive in the long term. Raghavan urged policymakers to ensure that Indian AI systems are deployed on a large scale to create a sustainable ecosystem. Moreover, he stressed the importance of government support, advocating for it to act as a "buyer of first resort" rather than waiting until local companies are in a difficult position. This proactive approach, he believes, would enable startups like Sarvam AI to thrive financially. Sarvam AI has recently launched large language models tailored for Indian languages and specific use cases, marking its entry as a significant player in India’s sovereign AI movement. The startup has benefitted from the IndiaAI Mission, gaining access to subsidized computing resources to support its development efforts. Raghavan noted that Sarvam AI has invested around $25-30 million in building its models, a fraction compared to the budgets of their global counterparts. He framed the discussion around AI as not just commercial competition but as a strategic imperative, urging that India's digital sovereignty is at stake. He concluded by asserting that the nation must decide whether it wants to be a consumer of foreign AI technologies or take the initiative to produce its own foundational technologies.