Indian Prime Minister Narendra Modi and US President Donald Trump have declared that India and the United States will prepare further plans to advance Artificial Intelligence (AI) by the end of 2025.
The two countries have announced in a joint statement that they will launch the US-India trust (Transforming the Relationship Utilizing Strategic Technology), and their goal is to sanction their investments in data centers. The Two Nation team will work to increase the availability of computing power for AI.
The goal of the trust initiative is to strengthen partnerships between governments, universities, and the private sector. These partnerships will help advance the use of important and new technologies in areas such as defense, AI, semiconductors, quantum computing, biotechnology, energy, and space. The initiative will also encourage the use of verified technology vendors and protect sensitive technologies.
The two leaders also have plans to work with US and Indian private industries by financing, building, powering, and connecting large-scale US-origin AI infrastructure in India with milestones and future actions.
As reported by the Indian Express, the joint statement states that “The US and India will work together to enable industry partnerships and investments in next generation data centers, cooperation on development and access to compute and processors for AI, for innovations in AI models and building AI applications for solving societal challenges while addressing the protections and controls necessary to protect these technologies and reduce regulatory barriers.”
India has already started the process of buying about 19,000 graphics processing units (GPUs) so that it can sell the chips to start-ups and researchers at low prices. At the same time, companies in the US like OpenAI, Softbank, Oracle, Microsoft, and Nvidia are working together to build OpenAI’s artificial intelligence (AI) infrastructure in the country.
An investment of $500 billion is expected to be made in a new company, Stargate Project, to fuel this expansion over the next four years.
So far, it was the US companies like OpenAI, Microsoft, and Google that were setting the AI narrative they had access to the most cutting-edge hardware made by another American company, Nvidia, and also access to the best AI talent in the world.
This monopoly was shattered when Deepseek came out with a low-cost foundational model from China. DeepSeek was up against OpenAI’s newest models in a number of ways. It also cost about $6 million to train and had limited access to cutting-edge hardware because of sanctions. It took OpenAI a lot longer to train its models than this.
Also, unlike OpenAI’s models, DeepSeek is open source. This means that developers can easily build on top of DeepSeek’s models, which has made people worry that OpenAI’s competitive edge might be at risk.
The two leaders also announced that they aim to build trusted supply chains, including semiconductors, critical minerals, advanced materials, and pharmaceuticals. As part of this effort, they plan to boost public and private investments to increase the Indian manufacturing capacity.
The statement also highlights that, “These investments will create jobs, diversify vital supply chains, address export controls boosting high technology commerce, and decrease barriers to technology transfer between two countries, and also reduce the risk of life-saving drug shortages in both the United States and India.”
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