India Chases 'DeepSeek Moment' with Homegrown AI

A handout photo made available by the Press Information Bureau (PIB) of Indian Prime Minister Narendra Modi speaking with global leaders at the AI Impact Summit 2026 at Bharat Mandapam in New Delhi, India, 19 February 2026.EPA/PRESS INFORMATION BUREAU HANDOUT HANDOUT
A handout photo made available by the Press Information Bureau (PIB) of Indian Prime Minister Narendra Modi speaking with global leaders at the AI Impact Summit 2026 at Bharat Mandapam in New Delhi, India, 19 February 2026.EPA/PRESS INFORMATION BUREAU HANDOUT HANDOUT
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India Chases 'DeepSeek Moment' with Homegrown AI

A handout photo made available by the Press Information Bureau (PIB) of Indian Prime Minister Narendra Modi speaking with global leaders at the AI Impact Summit 2026 at Bharat Mandapam in New Delhi, India, 19 February 2026.EPA/PRESS INFORMATION BUREAU HANDOUT HANDOUT
A handout photo made available by the Press Information Bureau (PIB) of Indian Prime Minister Narendra Modi speaking with global leaders at the AI Impact Summit 2026 at Bharat Mandapam in New Delhi, India, 19 February 2026.EPA/PRESS INFORMATION BUREAU HANDOUT HANDOUT

Fledgling Indian artificial intelligence companies showcased homegrown technologies this week at a major summit in New Delhi, underpinning big dreams of becoming a global AI power.

But analysts said the country was unlikely to have a "DeepSeek moment" -- the sort of boom China had last year with a high-performance, low-cost chatbot -- any time soon, AFP reported.

Still, building custom AI tools could bring benefits to the world's most populous nation.
At the AI Impact Summit, Prime Minister Narendra Modi lauded new Indian AI models, along with other examples of the country's rising profile in the field.

"All the solutions that have been presented here demonstrate the power of 'Made in India' and India's innovative qualities," Modi said Thursday.

One of the startups making a buzz at the five-day summit was Sarvam AI, which this week released two large language models it says were trained from scratch in India.

Its models are optimized to work across 22 Indian languages, says the company, which received government-subsidized access to advanced computer processors.

The five-day summit, which wraps up Friday, is the fourth annual international meeting to discuss the risks and rewards of the fast-growing AI sector.

It is the largest yet and the first in a developing country, with Indian businesses striking deals with US tech giants to build large-scale data center infrastructure to help train and run AI systems.

On Friday, Abu Dhabi-based tech group G42 said the United Arab Emirates would deploy an AI supercomputer system in India, in a project "designed to lower barriers to AI innovation".

So-called sovereign AI has become a priority for many countries hoping to reduce dependence on US and Chinese platforms while ensuring that systems respect local regulations, including on data privacy.

AI models that succeed in India "can be deployed all over the world", Modi said on Thursday.

But experts said the sheer computational might of the United States would be hard to match.

"Despite the headline pledges, we don't expect India to emerge as a frontier AI innovation hub in the near term," said Reema Bhattacharya, head of Asia research at risk intelligence company Verisk Maplecroft.

"Its more realistic trajectory is to become the world's largest AI adoption market, embedding AI at scale through digital public infrastructure and cost-efficient applications," she said.

Another Indian company that drew attention with product debuts this week was the Bengaluru-based Gnani.ai, which introduced its Vachana speech models at the summit.

Trained on more than a million hours of audio, Vachana models generate natural-sounding voices in Indian languages that can process customer interactions and allow people to interact with digital services out loud.

Job disruption and redundancies, including in India's huge call center industry, have been one key focus of discussions at the Delhi summit.

Prihesh Ratnayake, head of AI initiatives at think-tank Factum, told AFP that the new Indian AI models were "not really meant to be global".

"They're India-specific models, and hopefully we'll see their impact over the coming year," he said.

"Why does India need to build for the global scale? India itself is the biggest market."
And Nanubala Gnana Sai at the Cambridge AI Safety Hub said that homegrown models could bring other benefits.

Existing models, even those developed in China, "have intrinsic bias towards Western values, culture and ethos -- as a product of being trained heavily on that consensus", Sai told AFP.

India already has some major strengths, including "technology diffusion, eager talent pool and cheap labor", and dedicated efforts can help startups pivot to artificial intelligence, he said.

"The end-product may not 'rival' ChatGPT or DeepSeek on benchmarks, but will provide leverage for the Global South to have its own stand in an increasingly polarized world."



The Barista Is Human but an AI Agent Runs This Experimental Swedish Cafe

 Hanna Petersson, a member of Andon Labs’ technical staff, uses a telephone handset to speak with Andon Café's AI agent "Mona" in Stockholm, Sweden, Tuesday, May 5, 2026. (AP)
Hanna Petersson, a member of Andon Labs’ technical staff, uses a telephone handset to speak with Andon Café's AI agent "Mona" in Stockholm, Sweden, Tuesday, May 5, 2026. (AP)
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The Barista Is Human but an AI Agent Runs This Experimental Swedish Cafe

 Hanna Petersson, a member of Andon Labs’ technical staff, uses a telephone handset to speak with Andon Café's AI agent "Mona" in Stockholm, Sweden, Tuesday, May 5, 2026. (AP)
Hanna Petersson, a member of Andon Labs’ technical staff, uses a telephone handset to speak with Andon Café's AI agent "Mona" in Stockholm, Sweden, Tuesday, May 5, 2026. (AP)

The coffee might be poured by a human hand, but behind the counter something far less traditional is calling the shots at an experimental cafe in Stockholm.

San Francisco-based startup Andon Labs has put an artificial intelligence agent nicknamed “Mona” in charge at the eponymous Andon Café in the Swedish capital. While human baristas still brew the coffee and serve the orders, the AI agent — powered by Google’s Gemini — oversees almost every other aspect of the business, from hiring staff to managing inventory.

It is not clear how long the experiment will last, but the AI agent appears to be struggling to turn a profit in Stockholm’s competitive coffee trade. The cafe has made more than $5,700 in sales since it opened in mid-April, but less than $5,000 remains from its original budget of $21,000-plus. Much of the cash was spent on one-time setup costs, and the hope is that it eventually levels out and makes money.

Many cafe patrons have found it amusing to visit a business that's run by AI. Customers can pick up a telephone inside the cafe and ask the agent questions.

“It’s nice to see what happens if you push the boundary,” customer Kajsa Norin said. “The drink was good.”

Ethical concerns

Experts say ethical concerns abound, ranging from technology's role in humankind's future to conducting job interviews and judging employee performance.

Emrah Karakaya, an associate professor of industrial economics at Stockholm’s KTH Royal Institute of Technology, likened the experiment to “opening Pandora’s box" and said putting AI in charge can cause many problems. What might happen, he said, if a customer gets food poisoning? Who’s to blame?

“If you don’t have the required organizational infrastructure around it, and if you overlook these mistakes, it can cause harm to people, to society, to the environment, to business,” Karakaya said. “The question is, do we care about this negative impact?”

Founded in 2023, Andon Labs is an AI safety and research startup that says it focuses on “stress-testing” AI agents in the real world by giving them “real tools and real money.” It has worked with ChatGPT maker OpenAI, Claude’s Anthropic, Google DeepMind and Elon Musk’s xAI, and the startup says it is preparing for a future where “organizations are run autonomously by AI.”

The Swedish cafe is billed as a “controlled experiment” to explore how AI might be deployed going forward.

“AI will be a big part of society in the future, and therefore we want to make this experiment (to) see what ethical questions arise when we have AI that employs other people and runs a business,” said Hanna Petersson, a member of Andon Labs’ technical staff.

The lab previously held pilots that put Anthropic’s Claude AI in charge of a vending machine business and a San Francisco gift store. The vending machine simulation revealed some worrying traits: The AI agent told customers it would issue refunds but never did, and it also intentionally lied to suppliers about competitor pricing to gain leverage.

AI agent struggles with inventory orders

Mona got to work after it was prompted with some basic instructions, Petersson said. The team told it to try to run the cafe profitably, be friendly and easygoing, and figure out operational details by itself but ask for new tools if needed.

From there it set up contracts for electricity and internet, and secured permits for food handling and outdoor seating. The agent then advertised for staff on LinkedIn and Indeed, and set up commercial accounts with wholesalers for daily bread and bakery orders. It communicates with the baristas via Slack, often messaging them outside of working hours, which is a workplace no-no in Sweden.

Other problems have arisen, particularly related to inventory.

The AI agent has placed orders for 6,000 napkins, four first-aid kits and 3,000 rubber gloves for the tiny cafe — plus canned tomatoes that aren’t used in any dish the cafe serves.

And then there’s the bread. Sometimes the agent orders far too much, while other days it misses bakeries’ daily deadlines, forcing the baristas to strike sandwiches from the menu.

Petersson said the ordering issues are likely due to the AI assistant’s “limited context window.”

“When old memory of ordering stuff is out of the context window, she completely forgets what she has ordered in the past,” Petersson said.

Barista Kajetan Grzelczak said he isn’t worried about being replaced by AI just yet.

“All the workers are pretty much safe,” he said. “The ones who should be worried about their employment are the middle bosses, the people in management.”


Nintendo Shares Slump as Price Hikes, Games Shortfall Spook Market

A logo of Japanese video game company Nintendo at their store in Tokyo, Japan, 08 May 2026. (EPA)
A logo of Japanese video game company Nintendo at their store in Tokyo, Japan, 08 May 2026. (EPA)
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Nintendo Shares Slump as Price Hikes, Games Shortfall Spook Market

A logo of Japanese video game company Nintendo at their store in Tokyo, Japan, 08 May 2026. (EPA)
A logo of Japanese video game company Nintendo at their store in Tokyo, Japan, 08 May 2026. (EPA)

Nintendo's shares fell 7% in Tokyo on Monday after the company hiked Switch 2 prices and as the market frets over a lack of high-profile games to build momentum.

Nintendo posted robust hardware sales for the financial year ended March but, while the company is known for its conservative forecasts, its outlook for this year underwhelmed the market.

The Kyoto-based firm extended the life of the original Switch with games from franchises such as "The Legend ‌of Zelda" and, while ‌it has scored hits such as "Pokemon Pokopia", it ‌is seen ⁠as lacking potential ⁠blockbusters.

"The year-on-year decline in game shipment guidance risks signaling that Nintendo lacks confidence in its pipeline," Morningstar analyst Kazunori Ito wrote in a note.

"However, as user engagement typically accelerates in the second year of a console cycle, we view this as too pessimistic," he wrote.

Nintendo also said it would raise prices of its Switch 2, with the Japanese language Switch 2 Japan model to go ⁠up by 10,000 yen ($63.73) to 59,980 yen from May ‌25 and prices in markets, such as the ‌US, to rise from September 1.

The company has an audience among casual gamers ‌who are seen as particularly sensitive to price hikes, which come as electronics ‌makers grapple with a memory chip price surge.

The second year "is crucial and our non-consensus view is that it will release a Mario AAA game this year," Jefferies analyst Atul Goyal wrote in a note.

"The... guidance bar is low by design — Nintendo ‌has beaten initial (operating profit) guidance in each of the past four fiscal years," he wrote.

Unlike more diversified peer Sony, ⁠Nintendo remains highly dependent ⁠on its core gaming business even as its characters and intellectual property prove popular in movies and at theme parks.

With the PlayStation 5 having spent longer on the market, "Sony is in a much better position to pass higher costs of memory chips to consumers," Amir Anvarzadeh of Asymmetric Advisors wrote in a note.

Sony, whose shares were up 10% in Tokyo on Monday, forecast lower sales but higher profit at its gaming business. The company also said it was planning a new joint venture to develop and manufacture image sensors in Japan with TSMC as it seeks to control costs.

"These results were at least validating of the thesis that Sony can protect group profits by scaling back PS5 shipments," Bernstein analyst David Dai wrote in a note.


Musk Blasts French Prosecutors Probing His X Platform

SpaceX, Twitter and electric car maker Tesla CEO Elon Musk during his visit at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition center in Paris on June 16, 2023 and (R) the new Twitter logo rebranded as X, pictured on a screen in Paris on July 24, 2023. (Photo by Alain JOCARD / AFP)
SpaceX, Twitter and electric car maker Tesla CEO Elon Musk during his visit at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition center in Paris on June 16, 2023 and (R) the new Twitter logo rebranded as X, pictured on a screen in Paris on July 24, 2023. (Photo by Alain JOCARD / AFP)
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Musk Blasts French Prosecutors Probing His X Platform

SpaceX, Twitter and electric car maker Tesla CEO Elon Musk during his visit at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition center in Paris on June 16, 2023 and (R) the new Twitter logo rebranded as X, pictured on a screen in Paris on July 24, 2023. (Photo by Alain JOCARD / AFP)
SpaceX, Twitter and electric car maker Tesla CEO Elon Musk during his visit at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition center in Paris on June 16, 2023 and (R) the new Twitter logo rebranded as X, pictured on a screen in Paris on July 24, 2023. (Photo by Alain JOCARD / AFP)

Elon Musk has launched a tirade against French judicial authorities currently investigating possible abuses on his X social network -- prompting a fresh legal complaint from a gay rights group Saturday.

France opened an inquiry in January 2025 into allegations that X, formerly known as Twitter, was used to interfere in French politics.

The probe has since widened to cover allegations of Holocaust denial, distribution of sexual deepfakes and most recently possible complicity in the distribution of images of child sexual abuse.

Responding to a post on the latest phase of the inquiry, Musk wrote in French on Friday: "They're faker than a chocolate euro and gayer than a flamingo in a neon tutu!"

French campaigning group Stop Homophobie filed a complaint against Musk over his latest comments.

The group's lawyer, Etienne Deshoulieres, told AFP they had filed a complaint for "public insults towards a group of people because of their sexual orientation or gender identity".

The SpaceX and Tesla tycoon, under investigation along with former X CEO Linda Yaccarino, recently failed to respond to a summons from the French judiciary for an informal interview.

He already labelled French magistrates "mentally retarded" in an earlier post in French, following a raid on X's Paris office in mid-February.

At the time of the raid, the social network condemned what it called an abusive judicial action with political motives and denied any wrongdoing.

Contacted by AFP about Musk's latest published remarks, X declined to comment.