Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar on Monday dismissed OpenAI CEO Sam Altman's assertion that Indian companies are not up to developing artificial intelligence on the same scale or with the same maturity as his platform. Chandrasekhar, speaking to Moneycontrol, said India will create its own AI capabilities, even if in partnership with OpenAI, especially in the startup space.

"Sam Altman is a bright man who certainly has done a lot of work in OpenAI. And he has to be respected for his work. But we should not consider him anything other than an important man in AI. He's certainly not going to be the last word on what India's aspirations for AI are going to be," Chandrasekhar said, adding that there are many areas that Sam Altman and he are never going to agree on.

However, Altman himself had clarified on Twitter that his comments were taken out of context. Altman said he was referring specifically to startups developing an AI tool with $10 million, and that he encourages Indian companies to try.

the right question is what a startup can do that’s never been done before, that will contribute a new thing to the world. i have no doubt indian startups can and will do that! and no one but the builders can answer that question.

— Sam Altman (@sama) June 10, 2023

Meanwhile, the government has set an ambitious goal to increase the technology sector's share in the country's economy from just over 10 percent to about 20 percent by 2025. To achieve this, it has implemented two key types of policies. The first involves creating laws to ensure a safe, trusted, and transparent internet for citizens. The second focuses on deploying incentive schemes to encourage domestic manufacturing of high-end electronics.

The Ministry of Electronics and Information Technology (MeitY) is spearheading these efforts. In recent months, MeitY has launched a Rs 17,000-crore production-linked incentive (PLI) scheme for advanced computer makers, initiated a national programme to boost AI development, and commenced consultations on a new internet governance law, among other initiatives.

In the Moneycontrol interview, Chandrasekhar shed light on these developments and provided insights into the industry's response. He highlighted the positive reaction from established players like Dell and HP, who already have a presence in the Indian market and are expected to continue growing. However, he also emphasised the growing interest from smaller Indian IT hardware companies, reflecting the government's focus on nurturing homegrown champions in the sector.

Also read: We will be regulating AI through the prism of user harm: Rajeev Chandrasekhar

Chandrasekhar also discussed the provision introduced in the IT hardware PLI scheme, which mandates the use of firmware from Indian companies or trusted foreign sources. He stressed the importance of having a trusted system from end to end, including both the hardware and firmware components. By requiring the use of trusted firmware, the government aims to ensure the overall reliability and security of the technology being produced in India.

Regarding penalties for shortfalls in production, Chandrasekhar clarified that any shortfall can be made up in subsequent years, and the penalty can be paid later. He emphasised that it is not a penalty forgone but rather a penalty withheld, ensuring that manufacturers have flexibility in meeting production targets.

Addressing the prioritisation of semiconductor design and packaging over fabrication, Chandrasekhar explained that this approach aligns with the capital intensity and complexity of each stage. While the government recognises the importance of semiconductor fabs, it acknowledges that there will be fewer of them compared to design and packaging firms, he said, adding that the goal is to create the entire value chain simultaneously, rather than simply going up the value chain. Chandrasekhar noted that the government aims to achieve in 10 years what China has taken 30 years to accomplish.

Chandrasekhar said the Digital Personal Data Protection (DPDP) Bill, the National Data Governance Policy, and the forthcoming Digital India Bill are important legislative efforts that will address many issues. The government is aware of concerns related to privacy, personal data protection, and the monetisation of scraped data, and it intends to tackle these matters through comprehensive regulations.

Also read: Sam Altman meets PM Modi: What was the OpenAI CEO’s key agenda?

(Edited by : Pradeep John)

First Published:Jun 12, 2023 3:14 PM IST