India's AI Startups Prioritize Vertical Solutions Over ChatGPT-Style Models

Indian technology startups are concentrating on "vertical AI"—specialised artificial‑intelligence systems built for specific sectors such as healthcare, finance, manufacturing, logistics and energy—rather than developing large, general‑purpose models like ChatGPT. A 2025 report by accelerator Upekkha predicts global enterprise spending on vertical AI will grow from about $5 billion in 2024 to $47 billion by 2030, driven by lower training costs that have fallen from roughly $100,000 to $10,000 per year. Companies such as Credgenics, DeepTek and VaultEdge are already deploying industry‑focused AI to automate loan recovery, accelerate radiology workflows and process mortgage documents.

Infosys co‑founder Kris Gopalakrishnan echoed this perspective, stating that Indian IT firms are not meant to compete in frontier AI development. He noted that building large language models requires massive capital investment and high‑risk financing, which does not align with the profit‑stability model of publicly listed Indian IT companies. Instead, the sector contributes more than $200 billion annually through exports, supporting the country's foreign‑exchange reserves and economic growth, while focusing on AI implementation and services for global enterprises.