Deepseek's low-cost artificial intelligence (AI) platform has served as a reality check to the world's leading tech giants. The Chinese AI startup's success has ignited a conversation in India over the potential for domestic AI businesses to benefit from this trend.

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Many Indian businesses are already working on AI solutions in-house or through strategic alliances. No clear frontrunners have emerged yet. Still, Anand Rathi analysts have identified potential benefactors as L-T-I-Mindtree and latent view analytics.

Deepseek pushes India to look inward

According to the broker, latent view has a leg up in the AI preparedness game and also has a small but significant investment in an AI platform. Indian investors are also scouring for domestic AI winners after China's Deepseek created waves in the tech world.

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Deepseek released an open-source AI model called R1 that can simulate human reasoning. The Chinese AI firm has raised a fierce debate, challenging everyone's assumptions about AI costs.

US Mega tech firms have invested well over 1.2 trillion dollars since 2017 in AI infrastructure. Besides what Nvidia and energy firms have spent on AI, amazon has put in more than 420 billion dollars.

Google, Meta and Microsoft have spent over 220 billion dollars each. Oracle has invested nearly 60 billion dollars. On the other hand, Deepseek claims its model was developed with less than 6 million dollars.

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While Deepseek led a market rout of over one trillion dollars on Monday, global tech stocks have since pared some of those losses. Still, analysts warn the wealth loss could have a bigger impact on broader economies globally.

Separately, several indicators of market health point to Monday's abrupt drop being largely a hit to the world's largest technology companies and shares of AI-related stocks.

Yet, looking beyond tech heavyweights, a majority of S&P 500 stocks ended the day higher and have continued to gain. Still, Deepseek's success is all set to rejig the global approach to AI and big tech firms.

(With inputs from the agencies)