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India ’s IT rector on Thursday praisedDeepSeek‘s progress and say the country will host the Chinese AI lab ’s large voice communication models on domesticated servers , in a rare possibility for Chinese technology in India .

“ You have seen what DeepSeek has done — $ 5.5 million and a very , very potent model , ” IT government minister Ashwini Vaishnaw aver on Thursday , respond to critique New Delhi has receive for its own investment in AI , which has been much less than many other countries .

Since 2020 , India hasbanned more than 300 apps and serve linked to China , including TikTok and WeChat , citing national security concerns . The favorable reception to allow DeepSeek to be hosted in India come along dependant on on the chopine storing and march all Native American users ’ data point domestically , in wrinkle with India ’s strict data point localization requirements .

“ information concealment issues regarding DeepSeek can be addressed by hosting exposed informant models on Indian servers , ” Vaishnaw said at an industry conference .

DeepSeek ’s modelling will likely be hosted on India ’s new AI Compute Facility . The facility is power by 18,693 graphics processing units ( GPUs ) , nearly double its initial target — almost 13,000 of those are Nvidia H100 GPUs , and about 1,500 are Nvidia H200 GPUs . Around 10,000 GPUs are quick to be deployed , and the facility is scheduled to begin performance “ in the coming days , ” according to the curate .

The facility will also propose computing services at steep discount to firms in India . Vaishnaw said standard AI computing would be offered at a 42 % discount to market place pace , and gamey - precision computer science would be push aside by 47 % .

The minister ’s remark come a day after DeepSeek ’s eponymic appwas taken off Apple ’s and Google ’s app storesin Italy , after that country ’s data protection regulator articulate it wasasking how the Formosan house was using and storing Italians ’ personal datum .

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The release of DeepSeek ’s R1 “ conclude ” exemplar , built on a supposedly modest budget , send shock waves through the tech industry this week , causing chip giantNvidia ’s market cap to go down by $ 600 billion . The simulation has quickly hail under intense examination and has sparkle heated up debates aroundcopyright topic , U.S. export controls , and howeven more money demand to be poured into AI efforts .

Beyond host alien AI models , India is also trying to drive development of AI models and related to technology on its own sod . “ Major micro chip designers are uncoerced to work with India to develop indigenous GPUs , ” Vaishnaw said .

Vaishnaw estimated that India would see investment funds of $ 30 billion in hyperscalers and information centers over the next two to three long time . One of the country ’s biggest conglomerates , Reliance , is planning to build what could become the world ’s large datum heart in the city of Jamnagar , with a capacity of 3 gigawatts , Bloomberg reported last calendar week .

“ We believe there are at least six major developer who can uprise AI models in six to eight month on the outer demarcation line , and four to six calendar month on a more optimistic estimate . A common compute adroitness is the most important component for creating a robust AI ecosystem , ” Vaishnaw said .

The computing adroitness will also support India ’s broader AI initiative . Vaishnaw say 18 AI - driven app focusing on USDA , climate change , and learning handicap have been selected for initial funding .

To oversee ontogeny of these AI initiatives , India will establish a regulative soundbox using what Vaishnaw distinguish as a “ hub - and - spoke good example , ” allowing multiple institutions to collaborate on guard frameworks . “ We will be keep our manakin unfastened and app - rivet , ” he said .