India Praises DeepSeek’s Progress, to Host Chinese AI Lab’s Models on Domestic Servers

India’s IT Minister, Ashwini Vaishnaw, has praised DeepSeek’s progress and announced that the country will host the Chinese AI lab’s large language models on domestic servers. This move marks a rare opening for Chinese technology in India.

DeepSeek’s Model and India’s Investment in AI

Vaishnaw highlighted DeepSeek’s $5.5 million investment and powerful model, responding to criticism that India’s investment in AI has been less than other countries. Since 2020, India has banned over 300 apps and services linked to China, including TikTok and WeChat, citing national security concerns.

Data Localization Requirements

The approval to allow DeepSeek to be hosted in India is contingent on the platform storing and processing all Indian users’ data domestically, in line with India’s strict data localization requirements. Vaishnaw suggested that data privacy issues regarding DeepSeek can be addressed by hosting open-source models on Indian servers.

India’s AI Compute Facility

DeepSeek’s models will likely be hosted on India’s new AI Compute Facility, which is powered by 18,693 graphics processing units (GPUs). The facility is nearly double its initial target and will offer computing services at steep discounts to firms in India. Vaishnaw said standard AI computing would be offered at a 42% discount to market rates, and high-precision computing would be discounted by 47%.

DeepSeek’s App and Regulatory Issues

The minister’s remarks come a day after DeepSeek’s eponymous app was taken off Apple’s and Google’s app stores in Italy, after that country’s data protection regulator said it was asking how the Chinese firm was using and storing Italians’ personal data. The release of DeepSeek’s R1 "reasoning" model has sparked heated debates around copyright issues, U.S. export controls, and how more money needs to be poured into AI efforts.

India’s AI Development and Investment

Beyond hosting foreign AI models, India is also trying to drive development of AI models and related technology on its own turf. Vaishnaw estimated that India would see investment of $30 billion in hyperscalers and data centers over the next two to three years. One of the country’s biggest conglomerates, Reliance, is planning to build what could become the world’s largest data center in the city of Jamnagar, with a capacity of 3 gigawatts.

India’s AI Ecosystem and Regulatory Framework

Vaishnaw emphasized the importance of a common compute facility for creating a robust AI ecosystem. He also mentioned that 18 AI-driven applications focusing on agriculture, climate change, and learning disabilities have been selected for initial funding. To oversee development of these AI initiatives, India will establish a regulatory body using a "hub-and-spoke model," allowing multiple institutions to collaborate on safety frameworks.

Key Points

• India will host the Chinese AI lab’s large language models on domestic servers.
• DeepSeek’s models will be hosted on India’s new AI Compute Facility.
• India will offer computing services at steep discounts to firms in India.
• The country is trying to drive development of AI models and related technology on its own turf.
• India will see investment of $30 billion in hyperscalers and data centers over the next two to three years.
• A regulatory body will be established to oversee development of AI initiatives.