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

Krutrim, India’s first GenAI unicorn, is shifting from AI model development to cloud services after months of relative quiet on product updates — a move that reflects the tougher economics of building large-scale AI systems.

On Tuesday, Krutrim said it was moving toward cloud services, adding that the shift follows a business overhaul in late 2025 that included reallocating capital and talent and pausing chip design efforts. The update comes more than a year after the Bengaluru-based startup released its Krutrim-2 base model.