As the global AI race enters a new phase driven by US dominance in frontier models and chips and China's push to catch up, India risks being caught in the middle of export controls and the contest for technological supremacy.
The Global AI Race · India
Caught in the Middle: India's Quiet Play in the US–China AI Contest
As the US leads in frontier models and chips and China pushes to catch up, India advances homegrown models and a data-center buildout — while export controls threaten its access to advanced chips.
$48B
Rise in India's "hidden winner" industrial stocks on data-center demand
1.4B
People whose token demand Sarvam AI's local-model strategy targets
2022
US export controls on China-bound AI chips tightened since October
Three Regions, Three Positions
US
OpenAI · Google · Anthropic · Meta · NVIDIA
Leads in frontier models, chips and investment
China
Huawei Ascend · others
Seeks its own path under export controls
India
Sarvam AI · TCS · others
Local-focused models and data-center investment
Sarvam AI's Strategy
Breaking the grip of ChatGPT and Gemini through India-specific small models and B2B-led diffusion.
India-specific
→
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"Indian firms are skilled at optimizing under constraints" — reduced reliance on big tech, tapping local demand.
The Upside
Data-center investment lifts industrial stocks
Homegrown model development supports sovereignty
Late-mover caution became a quiet advantage
The Concerns
Export controls may constrain advanced chip supply
Still "waiting for the market to correct itself"
Calls for a national AI fund and dedicated ministry
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