AI, AI, AI, AI as this funny video from Sundar Pichai highliglts it, it the topic of the moment. As you all know; LLMs (Large languages models) are on the rise and even in a certain way: “Exploding.” See the picture on the right about it’s incredible exponential growth.
While Europe is working hard to implement new regulations, China, the US, and even India is developping these new technologies.
As the Bloomberg article from 4 May 2023 cites it, Fierce AI Talent War Shifts to India With Salaries Being Doubled; and why is AI so interesting for talents? Because so have so many of them. “India’s tech industry is built on a plentiful supply of affordable workers. Companies like Tata Consultancy Services Ltd. invented the model for modern outsourcing, in which Western companies tap engineers halfway around the world to handle support, services and software, typically at a fraction of the cost of local workers. There are now more than five million people employed in tech services in India, according to the trade group Nasscom.”
While I was in India two weeks ago for a friend’s wedding, I had the opportunity to visit Mumbai and Pune. While I was on a rooftop, I noticed something: construction was happening everywhere in the city. Additionally, while I was visiting a temple and interacting with people, many of them were excitedly sharing with me that 10 years ago, the maximum number of floors in buildings was 10. Now, they proudly exclaimed, ‘We have buildings with 78 floors!’ The Indian firm owner energetically conveyed this information to me.
Now; I won’t lie to you, I would still say it’s a third world country. Streets still look quite chaotic and I would not feel comforble living there long time.
This sentiment is echoed by Siemens CEO, who confirms the vibrant entrepreneurial spirit in India [source: Siemens CEO’s LinkedIn post]. Now, let’s take a closer look at the map of India to identify the major hubspots for AI, hardware manufacturing, and financial innovation.
Overview of India’s Startup Ecosystem
I got to know from conversation with many Indian entrepreneurs that Mumbai (20M inhabitant) is the financial capital of India, with most economical output for the country. However, Mumbai is getting more and more expensive for indians, and many firms, startups are re-locating to Pune (5 Milion inbitants). This is the case for the startup of a friend of mine; Sleepiz, which has his entire tech team there.
Chennai is the hun for manufacturing; where Apple also just decide to relocate most of his Iphone manufacturing facilities.
To my oppinion, based on what I saw which includes India demography and it’s IT focus education, India is really only at 1% of its potential. If we just look at these statistics, we can guess the direction:
Indian Startup Ecosystem has seen exponential growth in past few years (2015-2022 till date):
- 15X increase in the total funding of startups
- 9X increase in the number of investors
- 7X increase in the number of incubators
Conclusion:
In an increasingly interconnected world, the collaboration between India and the US/Europe holds immense potential, particularly in the face of the scarcity of affordable AI talent in the Western countries. To fully leverage the opportunities presented by India’s thriving startup ecosystem, it is crucial to delve deeper and gain a comprehensive understanding of its dynamics. Consider initiating Proof of Concepts (PoCs), fostering relationships with Indian universities, or exploring the option of hiring remote Indian-based talent. By embracing collaboration and tapping into the vast pool of innovation and expertise in India, businesses can drive growth and foster innovation on a global scale.
Source:
https://www.bloomberg.com/news/articles/2023-05-04/google-microsoft-amazon-drive-ai-talent-frenzy-across-india#xj4y7vzkg
https://www.theguardian.com/technology/2022/sep/27/apple-shifts-some-iphone-14-production-from-china-to-india#:~:text=A%20production%20line%20in%20Chennai,operations%20from%20the%20Chinese%20state.
https://www.investindia.gov.in/indian-unicorn-landscape
https://www.linkedin.com/feed/update/urn:li:activity:7059164164832796672?utm_source=share&utm_medium=member_desktop
