In a significant shift from his previous skepticism, OpenAI CEO Sam Altman now endorses India’s capacity to lead the global AI revolution, citing exponential market growth and innovation potential.
In a remarkable turnaround that has caught the attention of India’s tech ecosystem, OpenAI CEO Sam Altman has dramatically shifted his stance on India’s artificial intelligence capabilities. Speaking during a fireside chat with IT Minister Ashwini Vaishnaw, Altman highlighted India’s position as OpenAI’s second-largest market and endorsed the country’s potential to become a leader in the AI revolution.
This endorsement marks a striking contrast to Altman’s previous assessment in 2023, when he had dismissed India’s ability to develop large-scale AI models with limited budgets as “totally hopeless.” The OpenAI chief has now clarified that his earlier comments were taken out of context, acknowledging that while AI model development remains expensive, it has become increasingly feasible for Indian players to enter the space.
“India is an incredibly important market for AI in general, for OpenAI in particular,” Altman stated, revealing that OpenAI has seen its Indian user base triple over the past year. “We’ve learned a lot about building small models…it’s not cheap, it is still expensive to train them, but it’s doable. And, I think that’s going to lead to an explosion of really great creativity.”
The evolving landscape of AI development presents particularly promising opportunities for Tamil Nadu’s robust startup ecosystem. The state, known for its strong technical talent pool and established IT infrastructure, is well-positioned to capitalize on this shift in perspective. Chennai’s emerging AI startup cluster, supported by the state’s Startup and Innovation Policy 2018-2023, could see increased investor interest following Altman’s endorsement.
Dr. Lakshmi Narayanan, Chairman of the ICT Academy of Tamil Nadu, commented on the development: “Altman’s revised stance validates what we’ve been seeing on the ground. Tamil Nadu’s startups have been quietly building innovative AI solutions. With the right support and investment, we could see the next big AI breakthrough coming from our state.”
The economics of AI development are showing promising trends for emerging players. According to Altman, the cost for a given unit of AI intelligence is declining by approximately 10 percent each year, making it increasingly accessible for Indian startups to enter the space. This cost reduction, coupled with Tamil Nadu’s competitive advantage in terms of operational costs and technical talent, creates a favorable environment for AI innovation.
For Tamil Nadu’s startup ecosystem, this presents several key opportunities:
- The potential to develop specialized AI models focused on regional languages and local market needs
- Increased collaboration possibilities with global AI leaders like OpenAI
- Enhanced prospects for attracting both domestic and international investment in AI ventures
Looking ahead to immediate impacts, Altman projected significant changes in the technology landscape: “I think software engineering by the end of 2025 will look very different from software engineering at the beginning of 2025.” This rapid evolution could present immediate opportunities for Tamil Nadu’s 4,000+ registered startups, particularly those focusing on AI and machine learning applications.
