Why Reliance isn't interested in making its own AI chips
What's the story
Mukesh Ambani, the Chairman of Reliance Industries Limited (RIL), has clarified his company's approach to artificial intelligence (AI) in a recent interview with McKinsey & Company. Instead of racing for graphic processing units (GPUs) like other tech giants, RIL is focusing on creating solutions that make a difference in people's lives. "Technology changes lives," Ambani said, adding that they want to create an impact at scale that improves the lives of all Indians.
Strategic shift
Reliance's AI strategy focuses on real-world applications
Ambani emphasized that Reliance's strategy for AI is different from the global tech giants. He said, "Let's do everything downstream," highlighting their focus on purpose over hype. This means Reliance isn't interested in building its own chips or competing in foundational AI model development. Instead, it is focused on the application layer - using existing AI infrastructure to create real-world solutions across sectors like healthcare, education, agriculture and energy.
Market rivals
Vision is to solve complex societal problems
"Our big purpose is to solve the complex problems facing society and create wealth for the nation and the people," Ambani said describing his vision. In the AI space, Reliance's competition is likely to come from Indian conglomerates and agile start-ups already using AI for real-world problems. This could include companies like Tata Consultancy Services (TCS), Infosys, and Wipro in IT services.
Emerging challenges
Start-ups and tech giants are already working in these areas
Start-ups such as CropIn, Fasal in agriculture and Qure.ai, Niramai in healthcare are already leveraging AI to solve industry-specific problems. If Reliance decides to enter these sectors, it will have to compete with these players. Even global giants like Microsoft and Google could become competitors not directly in AI infrastructure but through its application. Both companies have collaborated with various state governments for translation services, education, and cloud-based public services using AI tools.