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India’s first GenAI unicorn shifts to cloud services as AI model ambitions face reality

Krutrim, India's first generative AI unicorn, is shifting its focus from developing its own AI models to providing cloud services, following layoffs and limited product updates. The move highlights the economic challenges of building and maintaining large language models in India's competitive AI landscape. This strategic pivot reflects broader industry trends where AI startups are struggling with the high costs of model development and training.

Background

Krutrim became India's first AI unicorn in late 2023, raising significant funding to develop large language models tailored for Indian languages. The company was founded by Bhavish Aggarwal, who also founded Ola Cabs and Ola Electric.

Source
TechCrunch
Published
May 5, 2026 at 09:18 PM
Score
6.0 / 10