India should build foundational models for AI, but investment is real entry barrier: Nadella

New Delhi: India must get into frontier work in artificial intelligence and build foundational models, but investment is a real entry barrier and just one mathematical breakthrough can change entire dynamics, Microsoft Chairman and CEO Satya Nadella said here on Wednesday.

During his second day of Microsoft India AI Tour, Nadella said that India can do great work in the area of Indic languages and transforming its industries using artificial intelligence.

"There's no reason why India can't do frontier work, but you can even define frontier pretty unique. So for example, I don't think the last known big breakthrough in AI frontier has happened. I always say we are one mathematical breakthrough away from that entire edifice being thrown out and being going after something else," Nadella said.

He said academics in India, the research institutions, including Microsoft Research, are very fantastic math team and algorithms team.

"Let's not be bound, quite frankly, with what is considered frontier. So I would say India definitely should also do frontier work. Also use the frontier in order to, post training, to make it great for Indic languages, make it great for Indian industry, and so on," Nadella said.

In response to a question by additional secretary in the IT ministry Abhishek Singh on whether India should build its own AI foundational model, Nadella said that India always has an option to do that but the real entry barrier in making foundational models is investment.

He said the other way to look at the investment barrier is to lower the cost with the help of research, which is always open for India.

"I think that is the design space here is there for India to make some smart, strategic choice. And I'm not saying you shouldn't do like you know, but then you have to be mindful that it is a capital intensive business if you want to be on the frontier," Nadella said.

At present, India is using AI engines or the foundational models developed by OpenAI, Google etc.

At the event, Microsoft announced strategic partnerships with RailTel, Apollo Hospitals, Bajaj Finserv, Mahindra Group, and upGrad to help their teams and customers benefit from cloud and AI innovation.

The company also signed an agreement with India AI to advance AI and emerging technologies in the country and establish AI Centre of Excellence and AI Productivity Labs to foster inclusive growth.