It’s a wrap: News this week (Jan 25 – Jan 31)

This week has seen significant developments in the tech industry, with Chinese Artificial Intelligence (AI) platform DeepSeek’s strong performance against ChatGPT, various companies announcing investment plans and new initiatives. Here’s a summary of the most important updates:

DeepSeek shakes global AI landscape

Chinese AI startup DeepSeek has made waves in the global AI arena with the launch of its R1 LLM, which has surpassed OpenAI's ChatGPT and other leading large language models (LLMs) on most benchmarks. This breakthrough has sparked a significant selloff in AI stocks as concerns grow over increased competition and investment scrutiny.

The development reflects a geopolitical response to US export restrictions and highlights the cost-efficiency of DeepSeek's AI model, priced at just $5.6 million — considerably lower than the $100 million budgets typical for industry giants like OpenAI. This situation underscores the need for smarter, not just larger, AI investments and raises questions about whether DeepSeek's success could encourage India to explore the development of its own foundational AI models.

Godrej Enterprises Group to Invest ₹1,200 Crore in Tech and Digital Skills

Godrej Enterprises Group (GEG) has unveiled plans to invest ₹1,200 crore over the next three years to bolster its digital capabilities and enhance customer experiences. The investment will focus on upgrading technology platforms, particularly in AI and generative AI, across its diverse business units. GEG aims to adopt a digital-first approach and create a more integrated customer experience by implementing initiatives like unique customer IDs and a Service Transformation Program. The company also intends to leverage advanced data analytics to refine its service and product development strategies.

L&T Technology Services Secures $80 Million Digital Engineering Deal

L&T Technology Services (LTTS) has signed an $80 million multiyear agreement with a US-based industrial manufacturer to accelerate the client’s digital transformation through connected products and digital thread technologies. As part of this agreement, LTTS will establish a Center of Excellence (CoE) in India to act as a global innovation hub, supporting the client’s digital initiatives and enhancing product lifecycle management. This partnership aligns with LTTS's strategy to deepen customer engagements and scale solutions globally.

ShareChat Launches AI Centre of Excellence in Singapore

Indian social media platform ShareChat has established its first Southeast Asia AI Centre of Excellence in Singapore, following its centers in the US and UK. This center, led by newly appointed CTO Nitin Jain, will allow ShareChat to tap into a broader network of specialized AI talent and enhance its technology stack. The company aims to strengthen its AI models, develop machine learning algorithms for content personalisation, and optimise ad targeting, with plans to grow its team to over 30 members within the next three years. CEO Ankush Sachdeva expressed excitement about leveraging Singapore's talent pool to accelerate the growth of India’s largest homegrown content and social media ecosystem.

Genpact Announces AI Gigafactory to Scale AI Projects

Genpact has launched its Artificial Intelligence (AI) Gigafactory, which combines its proprietary Agentic Solutions with AI tools and a responsible AI framework to accelerate AI-led transformation. The initiative aims to create a network of over 25,000 AI builders. Chief Technology and Innovation Officer Sanjeev Vohra noted that the Gigafactory will help businesses scale AI solutions from pilot projects to full production, addressing the increasing demand for enterprise-wide AI adoption while tackling governance challenges. Vohra highlighted that, despite the eagerness to utilize AI, only 5% of enterprises have reached full AI maturity, emphasizing the need for a multidisciplinary approach to drive transformative impacts.