Pivot · AI & Deep Tech

Ola Krutrim pivots from AI to cloud infrastructure after scaling back ambitions

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Ola Krutrim, founded by Bhavish Aggarwal, aimed to build India's sovereign AI models and full-stack AI ecosystem

The company raised $50 Mn in 2024 at a $1Bn valuation but has since paused LLM and semiconductor projects, cutting workforce from 550 to 160

Krutrim now focuses on AI cloud infrastructure, marking a significant pivot from its original vision of building India-first AI models

Ola Krutrim, founded in 2023 by Bhavish Aggarwal, aimed to build India's sovereign AI models and full-stack AI ecosystem.
The startup raised $50 Mn in 2024 at a $1Bn valuation, becoming the first AI unicorn in India.
Krutrim initially focused on multilingual AI models trained on Indic datasets and announced plans for AI chips, cloud services, and consumer assistants.
However, by late 2025, the company paused work on its LLM and semiconductor initiatives and pulled the plug on its consumer chatbot Kruti.
The workforce shrank from over 550 employees in August 2025 to around 160 as of March 2026, with several senior exits reported.
Krutrim has now pivoted to focus on AI cloud infrastructure services, marking a retreat from its original sovereign AI vision.
The pivot comes as the company faces competition from both global AI giants and emerging Indian startups.

Krutrim tried to pursue multiple ambitious projects simultaneously, including LLMs, AI chips, cloud services, and consumer assistants.
This stretched the company's resources and talent, leading to internal challenges and a decline in momentum.
The pivot to AI cloud infrastructure is seen as a more financially viable path, leveraging enterprise demand for compute resources.
The company now relies on Ola Group's clients and a few early enterprise users to build traction.

Ola Krutrim aimed to build India-first AI models trained on local languages and datasets.
The startup focused on multilingual AI systems to address the imbalance in global AI models that were disproportionately English-centric.
Krutrim also acquired Bodhi Computing, a Bengaluru-based AI startup focused on chip design, in 2023.
The company announced plans to launch GPUs for AI applications by 2027 as part of its semiconductor initiative.
Krutrim marketed itself as a full-stack AI ecosystem, including LLMs, AI assistants, enterprise tools, and cloud infrastructure.

Krutrim is now focusing on AI cloud infrastructure services as its core business.
The company is leveraging Ola Group's clients and a few early enterprise users to build traction.
It faces competition from both global AI giants and emerging Indian startups.

Matrix (now Z47) (lead) — Long-time investor in Ola and its affiliated ventures.