How China’s Speek could benefit India

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Deepseek from China launched its free model for commercial use and also Technological knowledge made public To build such a model from scratch. The company said it spent only $ 6 million on AI chip costs to develop the model.

Although some have Questions raised about the exact figureIt compares with the hundreds of millions, and sometimes billions of dollars, spent by US technology companies.

Development could mark the beginning of the development of the AI ​​model within India, since the previous methods to train large language models have required thousands of artificial intelligence chips with a lot of energy and expensive.

You could also mark an important turning point for Indian technology companies such as Infosyswhich have previously had to trust AI models created by technology companies based in the United States, such as Goal‘S call.

Keshav Murugesh, executive director of the Commercial Process Management Company WnsThe Depseek AI model said is a “fundamental advance” for Indian technology companies.

He suggested that the low development cost will allow new AI models to be trained in the regional languages ​​of India and allow previously non -economic use cases. The vast majority of sophisticated large language models today, such as Openi’s O1 and Claude Sonnet 3.5 of Anthrope, can only generate text in a handful of languages.

“By taking advantage of innovations behind Depseek, these companies can significantly reduce costs and accelerate their time to market,” Murrugesh told CNBC. Wnswhich appears in the NYSE, revealed in its call from the third quarter earlier this month, which will soon allow generative cases of use of AI in an IE insurance firm. UU., A Top 10 client for the company.

Industry surveys have shown that data privacy and the high cost of implementing large language models are among the reasons why companies have resisted the adoption of AI. The benefits of Deepseek-R1, if confirmed, would quickly eliminate two of the 10 main concerns and could begin to address a multitude of others.

The Indian government has also embarked on subsidizing access to AI chips, known as graphics processing units, to allow academics and new companies in the country to begin to develop AI models.

Indian IT services could also benefit from Deekseek more indirectly. Analysts expect large business clients of IT companies to redirect budgets far from the expenditure of the other expenses related to you.

“Depseek is positive for Indian IT services, in our opinion,” said UBS capital analysts led by Shaleen Kumar in a client note. “While it is still too early to completely evaluate the impact, the development of faster that implies lower costs should help free IT budgets, resulting in an increase in IT spending in other areas.”

However, not everything is good news. India -based corridor analysts, Anand Rathi, say that national companies with “great exposure” to cloud computing giants such as Microsoft, Amazon, Google and Oracle “You can face winds against the short term,” since agile companies exceed them by turning low -cost AI models of Deepseek.

Bank of America analysts also warned that a lower entry barrier for service providers increases competition in the sector, although these risks are in “very preliminary stages” at this time.

And so, in this globalized and connected world, an advance in China has the potential to benefit its Indian rival. However, Deepseek’s R1 has the potential to become a double -edged edged sword much earlier than many expect.

AT&TA large telecommunications operator from the USA. UU. With more than 150 million subscribers, reduced the number of customer service calls that receives in 30% in a single year, thanks to AI. The company has also achieved efficiency profits in software development.

“We are spending less at this time to develop a new code internally and get more,” said John Stankey, executive director of AT&T in a call with analysts. “And it is through the application of AI and technology and what we can do with the generative AI.”

Although it is expensive to implement using AI models developed by the US, it is cheaper compared to the high wages of the USA.

Given the growth concerns about unemploymentThe Indian government will expect the cheapest AI models not to end up displacing low -cost jobs.

– Michael Bloom of CNBC contributed reports. In case you are asking you, Deepseek-R1 did not.

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