India’s first GenAI unicorn shifts to cloud services as AI model ambitions face reality

Krutrim is shifting capital and talent away from AI model development and chip design toward cloud services after a business overhaul and layoffs.

The company says enterprise demand is rising, with more than 25 customers and most of its GPU capacity already committed.

Krutrim expects about ₹3 billion in FY26 revenue and says it has posted its first annual profit, though it did not disclose the revenue mix.

The pivot suggests AI infrastructure and cloud services may be easier to monetize in India than building frontier models from scratch.