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India’s AI Crossroads: Host US Hubs or Build Its Own Capability

Heavy US investment in data centers raises pressure to turn infrastructure into homegrown AI capability.

Overview

  • Google broke ground near Visakhapatnam on a large AI hub with AdaniConneX and Airtel Nxtra.
  • The chips will be designed in the US and made in Taiwan, and the model weights will be Google’s, leaving India to supply land, power and operations.
  • India’s policy debate now pits wide use of foreign tools across the economy against funding to develop frontier models at home, with voices like Nandan Nilekani and Ruchir Sharma highlighting the split.
  • The Economic Survey reported that India houses only 2% of AI training‑data startups and that national R&D remains below 1% of GDP.
  • A proposed USIndia plan urges links between Indian startups and US tech and capital, stronger supply lines for chips and undersea cables, easier talent mobility, and closer alignment on standards and cybersecurity.