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Nikkei Asia
Indian companies look to Chinese LLMs as AI costs bite
Amid rising pressure from artificial intelligence costs, Indian companies are increasingly looking to Chinese-developed large language models (LLMs) such as those from DeepSeek, Alibaba, and Moonshot AI. This trend highlights the growing reliance of Indian businesses on Chinese technology, which raises significant concerns about technology sovereignty and the geopolitical implications of such dependencies, especially considering the historical tensions between India and China.
MonitorConfidence: MediumShort term horizonCybersecurity risk: High
Published 13 Jul 2026, 04:20 UTC1 min read
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Summary
TL;DR
- Indian firms are adopting Chinese AI models to cut costs.
- Models like those from DeepSeek and Alibaba are becoming popular.
- Concerns about dependency on foreign technology are emerging.
- The shift reflects broader economic pressures on Indian companies.
- Geopolitical tensions complicate reliance on Chinese technologies.
Interesting facts
- Chinese LLMs are preferred for their competitive pricing.
- There are apprehensions regarding national security and technology sovereignty.
- DeepSeek's LLM has gained traction among cost-conscious Indian businesses.