Krutrim pivots to cloud — lessons for GenAI in India

Friends, a note from the AI front: Krutrim, India’s first GenAI “unicorn,” is shifting focus from model development to cloud services.

The company reorganized at the end of FY2025: reallocated capital and teams, paused chip development, and removed the Kruti app from stores.

Krutrim reports approximately ₹3bn revenue in FY26, its first annual profit with >10% margin; it serves over 25 enterprise clients and most GPUs are now used for external workloads. Media also report layoffs exceeding 200 roles and reduced public activity.

Why it matters: infrastructure can be more commercially viable for AI startups in the near term.

Should startups prioritise cloud services or proprietary models first?

#AI #cloud #startups #GenAI