Krutrim, India’s first Artificial Intelligence (AI) unicorn, secured $50 million in funding led by Matrix Partners. The investment not only marked the company’s rise to a unicorn status but also valued the company at a staggering $1 billion.
The company was founded just last year by Bhavish Aggarwal, the visionary behind Ola. Since then, the company has swiftly become the fastest Indian startup to achieve unicorn status and the first in the AI industry.
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Krutrim’s Mission and Funding
Krutrim has an ambitious mission to revolutionise the global AI space and bring about meaningful change. The recently acquired funds are to propel this mission forward, specifically focusing on building India’s complete AI computing stack. The startup has already unveiled its base Large Language Model (LLM) with an emphasis on Indian languages. Doing this makes the company a pioneer in catering to linguistic diversity.
Krutrim is Bhavish Aggarwal’s third venture after Ola and Ola Electric, which changed India’s ride-hailing and electric vehicle markets. Matrix Partners India has previously backed Aggarwal’s other successful ventures and led the $50 million “First round” in the company. The startup is not only making waves for its rapid growth but also for its commitment to indigenous AI development.
Krutrim’s AI Model and Future Plans
The Sanskrit word “Krutrim”, meaning “Artificial”, encapsulates the essence of the startup. The company is gearing up to launch a voice-enabled conversational AI assistant that can understand and speak multiple Indian languages. The company plans to make a beta version of its chatbot available to consumers soon, followed by APIs for developers and enterprises.
Beyond language models, the company is working on in-house chip manufacturing optimised for AI computation to align with Aggarwal’s broader vision for the startup. Aggarwal displayed his commitment to developing the country’s first complete AI computing stack by stressing that “India has to build its own AI”. Aggarwal highlighted that by successfully closing the first funding round, Krutrim validates its innovative solutions and instils confidence in the startup’s ability to drive significant change globally from India.
The investment in Krutrim comes when global investors actively seek opportunities in AI breakthroughs. Despite India boasting one of the world’s largest startup ecosystems, it has yet to make a substantial impact in the AI race. Krutrim’s emergence as a unicorn represents a big stride in changing this narrative.
Challenges and Competitors
Krutrim still has to expect intense competition from established AI giants like OpenAI’s ChatGPT, Amazon-backed Anthropic, and Google’s Bard. However, the company is expected to become a big player and pioneer by focusing on indigenous languages and a comprehensive computing stack. Other Indian contenders are also entering the arena, like Sarvam, which Peak XV and Lightspeed India recently backed.
Krutrim’s emphasis on local Indian languages distinguishes it in a landscape dominated by global language models. By training its language model on diverse linguistic nuances, the company will address the unique linguistic diversity present in India. This aligns with the startup’s commitment to inclusivity and positions it as a key player in regions where other models may struggle to communicate effectively.
India’s AI Landscape and Global Recognition
Beyond language models, Krutrim’s ambition extends to developing in-house chips optimised for AI computers. The company is taking a comprehensive approach to AI development to influence both software and hardware aspects of the AI ecosystem. With plans to explore chip design, Krutrim is set to contribute significantly to India’s technological capabilities and reduce dependency on foreign technology.
By becoming India’s first AI unicorn, Krutrim is setting a milestone for the startup and the broader Indian AI industry. India has yet to produce contenders that challenge the dominance of global language model titans, and Krutrim’s success represents a shift in this paradigm. The startup’s ability to attract substantial funding and recognition from global investors indicates the rising confidence in India’s potential to make a substantial impact on a global scale.
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