Mohan Das Pai, former CFO and Board Member at Infosys, discussed the deepening technological partnership between India and the United States, positioning the two countries as the next dominant forces in the global digital landscape.
Speaking at Cypher 2024, India’s biggest AI conference by AIM Media House, Pai explained that while China remains isolated behind its digital firewall, India and the U.S. are becoming increasingly intertwined.
“There are only three great digital powers in the world, the United States, China, and India. But China is shut off because of its firewall,” Pai explained, referencing China’s restrictive approach to outside influence. “The Chinese don’t want outsiders to get in or insiders to get out,” he added, noting that this leaves the U.S. and India as the key players.
Pai emphasised the close collaboration between the tech ecosystems of both nations. “Bangalore is closer to SFO than Delhi,” he said, highlighting the shared technological language and familiarity between these two major hubs. According to Pai, “the companies are there, the R&D centres are there, and the ecosystem is fantastic.”
He added that Bangalore needs the capital. “We need the competing power and investment capital. Once you do that, Bangalore has 350,000 chip designers, testers, and embedded software professionals—the largest pool of collective design and testing talent in the world.”
Despite political differences, Pai believes that the U.S. and India are “connected at the hip” when it comes to technology, and this partnership will serve as a “force multiplier” in driving both nations forward as global digital powers.
Speaking of Delhi, Pai said that the city speaks an ‘alien’ language’ when it comes to AI. “In Delhi, we communicate in an alien language. When we go to San Francisco in the Valley, it feels familiar. People speak the same language, and we understand each other,” he said.
He also took a dig at the Indian government, saying, “Delhi operates very differently. Remember that Delhi is responsible for solving India’s problems. It oversees Punjab, Bengal, where many positive developments are occurring, and Kashmir, along with Kerala in the south. Despite these responsibilities, Delhi has not managed to resolve its pollution issues over the past five years. I’m not even referring to AI.”
Referring to Mumbai, he said it’s ‘somewhere else’ and ‘a bit crowded.’
Moreover, Pai called on the Indian government to significantly increase its investment in AI. He pointed out that although the Government of India spends ₹90 lakh crores annually, only INR 3,000 to INR 4,000 crores is allocated for innovation, a sum he referred to as “peanuts.”
“The Government of India should invest INR 50,000 crores in AI. They need to support AI startups by providing grants and enabling them to invest in and develop solutions like ChatGPT,” he said.
Furthermore, he said that India is the third largest digital power in the world. “Out of 6 million software professionals in the U.S., 1 million are Indians. Among the 10 million working for American companies globally, 4 million are Indians,” said Pai.
It’s Easier to Build Startups in Bengaluru
San Francisco has long been the go-to for founders looking to build the next big thing, known as a hub for tech talent, investment, and trends. But now the Indian city, Bengaluru is quickly emerging as the next major startup hub.
Nick Linck, an X (formerly Twitter) user, recently shared an insight, “Your startup’s runway can stretch five times longer if you choose Bengaluru over San Francisco.”
But how?
For starters, you can get a place to live and hire a cook for just $500 a month. Compare that to San Francisco’s sky-high living costs, and it’s no wonder early founders are starting to rethink their options.
And so now is the time to consider this massive savings potential.
The reality is that most startups fail because they run out of money. So, this tip may help founders make more time to build by cutting down on living expenses.
Bengaluru’s Startup Scene
What sets Bengaluru apart is also the startup’s substantial venture capital funding. In 2020, Bengaluru attracted over $10 billion in venture capital investments, surpassing leading hubs like San Francisco and London.
Linck also pointed out a major milestone: South Park Commons, a community of founders and engineers, just opened its third global office in Bengaluru, after San Francisco and NYC. Seems like the big players are taking notice of this emerging ecosystem.
Another example is Indian-origin entrepreneur Hardeep Gambhir. In February 2024, moving to Bengaluru wasn’t on his radar but looking at India’s growing concentration of builders, he flew out from SF last May and now finds himself torn between two cities.
AI Startups in Bengaluru
Coming down to AI startups, the emergence of companies like Sarvam AI, which focuses on developing advanced AI models, reflects Bengaluru’s commitment to technological innovation.
Krutrim AI, led by Ola’s founder Bhavish Aggarwal, has raised $50 million in funding at a $1 billion valuation and is now India’s first AI startup to reach unicorn status.
Innovation in AI isn’t limited to corporate giants. Startups like KOGO OS are disrupting markets with their AI operating systems, offering modular AI assistants tailored for diverse industries. Meanwhile, Karya AI is pioneering in the rural employment sector, leveraging AI to create job opportunities through tasks in local languages, with notable partnerships with tech giants like Microsoft and Google.
These home-grown initiatives underscore Bengaluru’s status as a hub for AI innovation, promising transformative impacts across multiple sectors.
Speaking to AIM at the IGIC event 2024, Sanjeev Kumar Gupta, the CEO of Karnataka Digital Economy Mission, mentioned, “There are over 1,000 AI startups in Bengaluru. With initiatives like Beyond Bengaluru, we are also promoting AI startups, in Mysuru, Hubli, and Mangaluru.”
It’s evident that the city is buzzing with startup energy. While cities like San Francisco, New York, Beijing, and Shanghai lead the global startup ecosystem, Bengaluru, often dubbed as India’s Silicon Valley, ranks 33rd among global startup hubs according to PitchBook’s October 2023 survey.
Recent statistics highlight Bengaluru’s burgeoning startup landscape, boasting over 10,000 startups valued at approximately $50 billion. These figures underscore the city’s entrepreneurial vigor and its ability to foster an environment conducive to startup growth.
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