India’s first GenAI unicorn transitions to cloud services as AI brand ambitions meet reality

Krutrim, India’s first GenAI unicorn, is shifting from AI development to cloud services after months of silence on business updates – a move that shows its financial strength in building large AI systems.

On Tuesday, Krutrim said it is moving to cloud services, adding that the change follows a business restructuring plan by the end of 2025 that includes redistributing capital and talent and halting chip design. The move comes after a year from Bengaluru release its version Krutrim-2.

The move follows little public time from Krutrim, which has not made any major announcements in recent months. last post on X from December. The start did not appear in any part India’s AI Impact Conference in New Delhi, where global players such as Anthropic, Google, and OpenAI participated.

In contrast, his colleague Sarvam attended several sessions at the six-day AI event, where he presented. new open models, hardware development, and commercial cooperation.

The change also comes after layoffs at Krutrim last year, and more than 200 titles cut across several routes, according to local reports. Introduction he pulled his Kruti AI support program from app stores in April.

Founded by Bhavish Aggarwal (pictured above), who also heads ride-hailing company Ola and EV maker Ola Electric, Krutrim has positioned itself as one of India’s leading GenAI competitors, seeking to create domestic solutions for companies such as Anthropic, OpenAI, and Elon Musk’s xAI. Introduction raised $50 million at a cost of $1 billion in January 2024, reflecting the interest of Indian investors in India’s AI ambitions, although AI investment in the country is still lower than in the US.

Krutrim said it generated about ₹3 billion (about $31.52 million) in fiscal year 2026, a three-fold increase over the previous year, and its first annual profit with a margin of more than 10%. The startup didn’t say how much of that money came from overseas customers versus its parent Ola’s ecosystem. Previous reports have shown that about 90% of his income in FY25 came from group companies.

However, Krutrim said it sees demand for its cloud AI services, with more than 25 customers across sectors including telecom, financial services, and healthcare. It added that most of its GPU computing power is already dedicated to external projects.

Sanchit Vir Gogia, senior analyst at Greyhound Research, said the move to the cloud was smart, but cautioned that Krutrim’s profitability needs to be tested. “The evidence has to go up with what they’re saying,” he told TechCrunch.

While Krutrim is transitioning to cloud computing, competitors such as Sarvam will continue to release new AI models and sign partnerships, including in the near future. one with the front company Pixxel to create an AI-powered data center.

As Gogia points out, infrastructure may be the driving force behind India’s AI market, although the long-term desire to develop competitive models remains.

Krutrim did not respond to questions about its specific mix of investments, business clients, and recent restructuring.