India must build its own DeepSeek or risk AI dependence on US, warns Bernstein

India risks falling behind in the global artificial intelligence race if it does not develop its own foundational AI models, a new report by Bernstein has warned.According to a Moneycontrol report, the brokerage said India needs to build its own “DeepSeek-like” model or face long-term dependence on US-based AI systems, especially as access to advanced technologies becomes increasingly restricted.The report argues that recent US curbs on access to frontier AI models mark a turning point, signalling that large language models (LLMs) are no longer just commercial tools but strategic assets. Governments, it noted, are beginning to treat these technologies similarly to critical infrastructure or defence equipment.“India can’t build its AI future on borrowed models,” Bernstein said, cautioning that relying on foreign platforms while focusing only on applications could leave the country vulnerable to geopolitical risks.Read more: Big Tech lock-in limits consumer choice, raises concerns over competition in India’s digital economy: SurveyAt present, India’s AI ecosystem is largely geared towards building services and applications on top of global models developed in the US or China. While this approach enables faster deployment, it limits control over core technology and intellectual property; areas where value creation is increasingly concentrated.The report likens AI models to “the next fighter jet,” underscoring their strategic importance. As countries tighten access to critical technologies, from semiconductors to advanced AI, India could find itself locked out of cutting-edge systems or forced to operate with older versions.Such a scenario, Bernstein warned, could put Indian technology companies at a structural disadvantage, particularly as global competitors build capabilities on more advanced models.The brokerage also pointed to examples like restricted access to certain advanced AI models for non-US users to illustrate how access is already being controlled—highlighting the risks of overdependence.To address this, Bernstein recommends that India invest more aggressively in building domestic foundational models rather than focusing solely on data centres, infrastructure, or application-layer innovation.Also read: Telegram’s ad business: How the messaging app makes money