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OpenAI CEO Sam Altman Says India's AI Startup Potential "Totally Hopeless"


Responding candidly to a question in the Indian capital New Delhi, OpenAI CEO Sam Altman said: "The way this works is we're going to tell you, it's totally hopeless to compete with us on training foundation models you shouldn't try, and it's your job to like try anyway. And I believe both of those things. I think it is pretty hopeless." This occurred at an event organized by The Economic Times where Altman answered a question by Rajan Anandan, a former Vice President of Google in India and South East Asia and current venture capitalist.

OpenAI CEO Sam Altman in India



Altman in Delhi:

Sam Altman, the young CEO of OpenAI, the company that recently launched its revolutionary Generative AI app ChatGPT, was in India as part of a six-nation tour to discuss AI regulation. ChatGPT has been trained on massive amounts of data and text from the internet and academic journals. It can write computer code and carry on sophisticated conversations on a lot of different subjects. Altman is also visiting China. He was invited to speak at an event sponsored by Indian publication Economic Times. Here's the full exchange between Anandan and Altman about the potential for an Indian AI startup:

Anandan: "Sam, we have got a very vibrant ecosystem in India but specifically focussing on AI, are there spaces where you see a startup from India building foundational (AI) models; how should we think about that. Where is it that a team from India, with three super-smart engineers having not 100, but USD 10 million each could actually build something truly substantial?"

Altman: "The way this works is, we're going to tell you. It's totally hopeless to compete with us on training foundation models. You shouldn't try, and it's your job to like trying anyway. And I believe both of those things. I think it is pretty hopeless."

Challenge Accepted:

Judging by social media responses, most Indians reacted angrily to Altman's negative remarks. They accused him of "arrogance". Others saw his statement as a challenge and responded by accepting the challenge.

Tech Mahindra CEO CP Gurnani said he accepts the challenge. “OpenAI founder Sam Altman said it's pretty hopeless for Indian companies to try and compete with them. Dear Sam Altman, from one CEO to another...CHALLENGE ACCEPTED,” tweeted Gurnani.

India's Tech Industry:

Americans like Sam Altman know that India's tech industry is made up mainly of companies that are essentially body shops. These companies like Infosys, TCS and others supply Indian H1B workers to perform routine tasks in IT operations departments of western companies. These companies' revenue, labeled India's "IT exports", comes from the substantial cuts they keep from the wages of millions of Indian H1B workers. These workers replace higher-paid American employees. Rapid developments in AI technology are now threatening such jobs.

In 2016, India filed a complaint with the World Trade Organization (WTO) when the US raised visa fees to $4000 for each H1B worker visa. Indian government argued that it is discriminatory to the country under its trade agreement with the US.

Indian startups are not based on any original ideas born in India. They are essentially copies of similar e-commerce or logistics or payments startups in the western world.

Altman in China:

Altman is also visiting China this week. “China has some of the best AI talent in the world and fundamentally, given the difficulties in solving alignment for advanced AI systems, this requires the best minds from around the world,” Altman told participants at the event hosted by the Beijing Academy of Artificial Intelligence.

Western Media:

Indians were justifiably very proud of their great scientific achievement when the India Space Agency ISRO successfully launched the nation's Mars Mission back in 2013. The New York Times, America's leading newspaper, mocked India with a cartoon depicting the country as a dhoti-wearing farmer with his cow knocking on the door of the Elite Space Club.

New York Times Cartoon
Der Spiegel's Cartoon Comparing India and China



In an article titled "Paper Elephant", the Economist magazine talked about how India has ramped up its military spending and emerged as the world's largest arms importer. "Its military doctrine envisages fighting simultaneous land wars against Pakistan and China while retaining dominance in the Indian Ocean", the article said. It summed up the situation as follows: "India spends a fortune on defense and gets poor value for money".

After the India-Pakistan aerial combat over Kashmir, New York Times published a story from its South Asia correspondent headlined: "After India Loses Dogfight to Pakistan, Questions Arise About Its Military". Here are some excerpts of the report:

"Its (India's) loss of a plane last week to a country (Pakistan) whose military is about half the size and receives a quarter (a sixth according to SIPRI) of the funding is telling. ...India’s armed forces are in alarming shape....It was an inauspicious moment for a military the United States is banking on to help keep an expanding China in check".

Der Spiegel Cartoon:

In April this year, German publication Der Spiegel published a cartoon as India surpassed China as the world's most populous nation. The cartoon poked fun at India's lack of progress relative to its northern neighbor. It shows jubilant Indians on an old and overcrowded train – many on the roof – as it overtakes a sleek Chinese bullet train.


Spanish Newspaper Cartoon:'

In May 2022, Spanish newspaper La Vanguardia published a story titled "La hora de la economia India" along with a cartoon showing an Indian snake charmer. Indian media reacted angrily to what they saw as a racist stereotype.






US Disrespects India:

Notwithstanding the geopolitically-motivated public rhetoric of US presidents and other western leaders, the fact is that they do not respect India. "One hard truth that Indians have to contend with is that America has also had difficulty treating India with respect", writes former Singaporean diplomat Kishore Mahbubani in his latest book "Has China Won?". "If America wants to develop a close long-term relationship with India over the long run, it needs to confront the deep roots of its relative lack of respect for India", adds Ambassador Mahbubani. It's not just Mahbubani who suspects the United States leadership does not respect India. Others, including former President Bill Clinton, ex US President Donald Trump, former Secretary of State Hillary Clinton and CNN GPS host Fareed Zakaria have expressed similar sentiments.




Trump and Clinton:

There is some evidence to support Ambassador Mahbubani's assertion about America's lack of respect for India. For example, ex US President Bill Clinton said in 1990s that India has a Rodney Dangerfield problem: It can’t get no respect, according to his deputy secretary of state Strobe Talbott. In a diplomatic cable released by WikiLeaks in 2010, Hillary Clinton referred to India as "a self-appointed frontrunner for a permanent UN security council seat."

More recently, US President Donald Trump mocked Indian Prime Minister Narendra Modi about Indian contribution to Afghanistan. Trump said he got along very well with Prime Minister Narendra Modi, but the Indian leader was "constantly telling me he built a library in Afghanistan". "That's like five hours of what we spend... And we are supposed to say, 'oh, thank you for the library'. I don't know who is using it in Afghanistan," Trump said.

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No homegrown Indian contenders have emerged to challenge the dominance of large language model titans such as OpenAI’s ChatGPT, Google Ventures–backed Anthropic, or Google’s Bard.




“While there are over 1500 AI-based startups in India with over $4 billion of funding, India is still losing the AI innovation battle,” say analysts at Sanford C. Bernstein.


To their credit, many of India’s major startups are using machine learning to enhance aspects of their business operations. For instance, e-commerce giant Flipkart uses machine learning to refine customer shopping experiences, while Razorpay utilizes AI to combat payment fraud. Unicorn edtech Vedantu recently integrated AI into its live classes, making them more accessible and affordable.

Industry insiders attribute India’s dearth of AI-first startups in part to a skills gap among the nation’s workforce. Now the advent of generative AI could displace many service jobs, analysts warn.

“Among its over 5 million employees, IT in India still has a high mix of low-end employees like BPO or system maintenance. While AI isn’t at the level of causing disruptions, the systems are improving rapidly,” Bernstein analysts said.

Dev Khare, a partner at Lightspeed Venture Partners India, recently assessed the disruptive potential of AI and warned that jobs and processes in industries such as market research, content production, legal analysis, financial analysis, and various IT services jobs could be impacted.
 
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No homegrown Indian contenders have emerged to challenge the dominance of large language model titans such as OpenAI’s ChatGPT, Google Ventures–backed Anthropic, or Google’s Bard.




“While there are over 1500 AI-based startups in India with over $4 billion of funding, India is still losing the AI innovation battle,” say analysts at Sanford C. Bernstein.


To their credit, many of India’s major startups are using machine learning to enhance aspects of their business operations. For instance, e-commerce giant Flipkart uses machine learning to refine customer shopping experiences, while Razorpay utilizes AI to combat payment fraud. Unicorn edtech Vedantu recently integrated AI into its live classes, making them more accessible and affordable.

Industry insiders attribute India’s dearth of AI-first startups in part to a skills gap among the nation’s workforce. Now the advent of generative AI could displace many service jobs, analysts warn.

“Among its over 5 million employees, IT in India still has a high mix of low-end employees like BPO or system maintenance. While AI isn’t at the level of causing disruptions, the systems are improving rapidly,” Bernstein analysts said.

Dev Khare, a partner at Lightspeed Venture Partners India, recently assessed the disruptive potential of AI and warned that jobs and processes in industries such as market research, content production, legal analysis, financial analysis, and various IT services jobs could be impacted.
Indian IT is focused on making money immediately, very little of it goes to long gestation product development.
Whether iot ai cloud whatever
the R&D happens with 1000:1 success ratio elsewhere (where also Indian software and math professionals contribute heavily)


@RiazHaq shoudl acquire some general commercial knowledge first, then apply some common sense before passing on quotes from others without thinking. Or may be thoughtless self embarrassment is his prime attribute.

I remember earlier he was obfuscating model training with AI capability, completely without the ability to comprehend what Altman said.

Oh wait ! he Riaz must first start with English 101
 
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Tell us how many of those Indian CEOs were removed for failing in their jobs
The West is a dying power. None of the banksters faced any reprecussions for their role in causing the 2008 crash. The Indians started becoming the CEOs once the West started tolerating and expecting mediocre outcomes.

The West is also very self righteous. They have been playing around with the stupid idea of equality of outcome by allowing low IQ Indians, among the dumbest and stupidest in the world with an average IQ of 74 which is highly skewed to the right by the way due to a large population. Which means in actual real life the Indians have IQs much lower than it appears.

Tell us how many of those Indian CEOs were removed for failing in their jobs
It is kind of like why the Western elite have decided to go easy on petty criminals in their own mega citiez. Every major Western city is facing rise in criminal behavior because the Western elite are on some self righteous crusade to empower the vulnerable minorities.
 
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Indian IT is focused on making money immediately, very little of it goes to long gestation product development.
Whether iot ai cloud whatever
the R&D happens with 1000:1 success ratio elsewhere (where also Indian software and math professionals contribute heavily)


@RiazHaq shoudl acquire some general commercial knowledge first, then apply some common sense before passing on quotes from others without thinking. Or may be thoughtless self embarrassment is his prime attribute.

I remember earlier he was obfuscating model training with AI capability, completely without the ability to comprehend what Altman said.

Oh wait ! he Riaz must first start with English 101
Lol Indian software? Copy/pasters that have been using code generators since the 90s?

No one can come close to Chinese and Eastern Europeans on programming.
 
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The West is a dying power. None of the banksters faced any reprecussions for their role in causing the 2008 crash. The Indians started becoming the CEOs once the West started tolerating and expecting mediocre outcomes.

The West is also very self righteous. They have been playing around with the stupid idea of equality of outcome by allowing low IQ Indians, among the dumbest and stupidest in the world with an average IQ of 74 which is highly skewed to the right by the way due to a large population. Which means in actual real life the Indians have IQs much lower than it appears.


It is kind of like why the Western elite have decided to go easy on petty criminals in their own mega citiez. Every major Western city is facing rise in criminal behavior because the Western elite are on some self righteous crusade to empower the vulnerable minorities.

Let us discuss the 2008 real estate crash. there are tons of people buying homes they had no business buying. The bankers did not cause that.
We do not appoint anyone with IQ of 74 as CEO. It might happen in a banana republic like Pakistan.
The so-called empowerment of minorities has nothing to do with appointment of Indian American CEOs

Cool down dude
 
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Let us discuss the 2008 real estate crash. there are tons of people buying homes they had no business buying. The bankers did not cause that.
We do not appoint anyone with IQ of 74 as CEO. It might happen in a banana republic like Pakistan.
The so-called empowerment of minorities has nothing to do with appointment of Indian American CEOs

Cool down dude
Lol! Given India's low quality education system, and coupled that with your inherently low IQ scores on average, it comes as no surprise that you will repeat whatever the main stream ruling class media has told you about what the real cause for the crash was. That and whatever you picked up from the pop-culture and Hollywood trash movies. Honestly one feels sorry for your mental abilities at times!

So here is a little lesson for free: In the year 2000, George Dubya Bush eliminated many regulations. Some of those regualtions prevented the banksters from gambling with retail banking cash inflows. The removal of these regulations ultimately resulted in a crash approximately eight years later, in the year 2008.
 
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Lol! Given India's low quality education system, and coupled that with your inherently low IQ scores on average, it comes as no surprise that you will repeat whatever the main stream ruling class media has told you about what the real cause for the crash was. That and whatever you picked up from the pop-culture and Hollywood trash movies. Honestly one feels sorry for your mental abilities at times!

So here is a little lesson for free: In the year 2000, George Dubya Bush eliminated many regulations. Some of those regualtions prevented the banksters from gambling with retail banking cash inflows. The removal of these regulations ultimately resulted in a crash approximately eight years later, in the year 2008.


Real estate prices in 2023 are higher (50% - 300%) than the real estate prices in 2006-2007 at the height of the bubble. You lost money only if you were forced to sell your home during the crash.
 
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Let us discuss the 2008 real estate crash. there are tons of people buying homes they had no business buying. The bankers did not cause that.
We do not appoint anyone with IQ of 74 as CEO. It might happen in a banana republic like Pakistan.
The so-called empowerment of minorities has nothing to do with appointment of Indian American CEOs

Cool down dude
The Banksters went around the globe waging war in order to make 100s of billions. Not a single bankster has faced justice so far for waging these wars.

The Western ruling class has pretty much decided to implement the equality of outcome philosophy at home. It has a two fold meaning:
1) Everyone should have a level playingfield of access and everyone should have (and must if needed) similar outcomes of success.

2) Critical thinking ability is no longer required since the technological threshold of autonomous innovation is within reach.

Indians average out at an IQ of 74, not that a CEO would have an IQ of 74, the fact that you conflate the two speaks volumes!

Real estate prices in 2023 are higher (50% - 300%) than the real estate prices in 2006-2007 at the height of the bubble. You lost money only if you were forced to sell your home during the crash.
Read my post again. What you're saying had nothing to do with the post.

But since you brought it up, the real estate market is heavily inflated. The speculators have not done it any favors either. Aside from these factors, the cartel money being laundered via real estate means the little guy has been forgotten for good by the Western elite.
 
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Real estate prices in 2023 are higher (50% - 300%) than the real estate prices in 2006-2007 at the height of the bubble. You lost money only if you were forced to sell your home during the crash.
People highly leveraged on short term flex loan, trying to flip in a booming market got the short end of the stick.

I know people buying home in 2011-2013, are up 100-200% on average.
 
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real estate means the little guy has been forgotten for good by the Western elite.

64% of Americans are homeowners. that includes a lot of little guys. they profited from the homeowner boom.
 
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64% of Americans are homeowners. that includes a lot of little guys. they profited from the homeowner boom.
The regulations prevented JP Morgan Banksters etc from speculating on and risking retail banking savings of the average Joe. Prior to 2000 the USA was a different world.

Clinton initiated the death of the American working class. Dubya put the last nail in its coffin. What you're pointing to was a side effect of the illness.

One in four Americans have no emergency savings. 37% have no savings, 41% have less than four months savings.

64% ownership is pretty low for an advanced economy.
 
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The regulations prevented JP Morgan Banksters etc from speculating on and risking retail banking savings of the average Joe. Prior to 2000 the USA was a different world.

Clinton initiated the death of the American working class. Dubya put the last nail in its coffin. What you're pointing to was a side effect of the illness.

One in four Americans have no emergency savings. 37% have no savings, 41% have less than four months savings.

64% ownership is pretty low for an advanced economy.

Do you pull numbers out of thin air ? Do you want to post home ownership stats for other advanced countries ?
I will give you a hint USA is the middle of the pack
 
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