Nilesh Jasani: Snap out of the DeepSeek delusion and invest big in basic research

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Subscribe to enjoy similar stories. The artificial intelligence (AI) landscape is shifting beneath our feet. As Mint reported, India wants to develop its own AI chip.

OpenAI chief Sam Altman, on a visit to India, urged the country to go for full-stack AI development. Yet, some in India still seem to cling to outdated narratives. The rise of DeepSeek, a groundbreaking AI model, has exposed a fascinating phenomenon: a widespread reluctance to revise established viewpoints, even in the face of compelling new evidence.

Hardly any financial analyst globally has changed a single conclusion since DeepSeek revealed process innovations. Instead, justifications have been rolled out in support of previous conclusions. DeepSeek’s reinforcement of pre-existing biases has also been notable among commentators in India, many of whom still find it prudent to avoid foundational research—no longer because it is too expensive or something we cannot do, or because large players are already far ahead, which was their earlier argument, but because it is too cheap and easy; everyone is doing it, so there’s no need for India to join a crowded race.

Effectively, their advice is to sit on the sidelines and watch the rest of the world burn through money and energy on AI models. Then, as the dust settles, we should use our unique data to create applications on top of others’ work to suit our needs. Sounds safe, right? Wrong.

This ‘wait-and-see’ approach a risky bet that could leave India far behind in the global innovation race. Here’s why: The race won’t slow down—It’s speeding up: Advocates of caution assume that the AI race will eventually stabilize, giving latecomers a chance to benefit from others’ mis-trials, mistakes, and premature wins. But