Chips, Stargate, DeepSeek keep Indian AI cos on edge

Despite DeepSeek's threat, there is room for growth for AI service providers, an expert said

- Shouvik Das

On Wednesday, before market opening, ₹8,200-crore AI cloud services firm Netweb Technologies issued a note to investors. Set against the backdrop of a sharp 48% decline in its stock price within just two weeks of trading, the note sought to assuage its investors that this decline was, in fact, a blip in the company's growth radar.

Titled 'Update on certain global developments in the space of AI and its impact on Netweb Technologies' business', the note claimed that the company is well-poised to capitalize upon the emergence of China's artificial intelligence upstart DeepSeek, which rained catastrophe on US tech giant Nvidia Corp on Monday by wiping out nearly $600 billion from its market cap.

"DeepSeek paves the way for inclusive AI adoption, expanding the market further. By lowering the cost barriers associated with advanced technology, it enables a wider range of customers-previously hesitant due to high adoption costs-to access and utilize appropriate computing resources... AI performance acceleration enabled by platforms like DeepSeek will drive greater adoption of our solutions," the company's investor note read.