Krutrim, India's first GenAI unicorn, is abandoning its AI model ambitions. The company has laid off staff and released limited product updates, highlighting the economic difficulties of building AI models in India.

The pivot to cloud services is a significant change in Krutrim's business strategy. The company had previously focused on developing AI models, but this approach has proven unsustainable.

Building AI models requires substantial investment in talent, infrastructure, and data. Krutrim's pivot suggests that the company has struggled to generate revenue from its AI models. The Indian market, while growing,…

A report by a leading industry analyst noted that the cost of training and deploying AI models is prohibitively expensive. This cost is a major barrier for AI startups in India, where talent is scarce and infrastructu…