KPMG in India CEO Yezdi Nagporewalla highlights the unsustainable valuations of global AI companies while expressing confidence in India’s potential to develop its own Local Language Models and catch up in the artificial intelligence race.
Key Points
- KPMG India CEO Yezdi Nagporewalla questions the high valuations of large global AI companies, stating they are not justified by current revenue models.
- He believes these valuations are unsustainable and may represent a bubble.
- Nagporewalla is confident India will develop its own unique Local Language Models (LLMs) soon.
- India’s strong technology ecosystem and global capability centres provide a significant advantage for catching up in the AI race.
- Despite potentially missing an early lead, India has a good opportunity to establish itself in the evolving AI landscape.
KPMG in India CEO Yezdi Nagporewalla on Tuesday expressed dismay at the valuation model of some of the large global AI companies, and said India may have missed the early lead in artificial intelligence, but there is scope for the country to catch up.
India’s AI Opportunity Amidst Valuation Concerns
Stating that it is only a “question of time” before India has its own Local Language Model (LLM), the CEO said he was “very confident” that the country would develop one and that it could be “dramatically different” because of technology ecosystem and the presence of global capability centres, or captives.
Nagporewalla also expressed scepticism about the valuations being assigned to some of the large AI companies globally, and said that such valuations cannot be permanent. “… if you see the revenue and the valuation model of some of these large companies, there is no way that valuation can be justified with those revenue models. And that question, I don’t have an answer to in terms of how these things are worth (USD) one trillion or whatever it is, when their revenue itself is less than (USD) 50 billion,” he said.
Asked if India has missed the AI bus, Nagporewalla said: “In some ways, yes, and in some ways, no”. He added that if their is a valuation bubble in AI companies, then it would not be permanent. “And if that’s not permanent and it’s a question of time for us, then there’s a good opportunity for us to catch up,” Nagporewalla said at the AIMA’s National Management Convention here.
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