India is offering foreign tech giants a 21-year tax holiday if they run global AI workloads from Indian data centers, effectively turning the country into a near “zero-tax” hub for computing power while attempting to address energy and water challenges.
The budget proposal allows foreign providers to avoid corporate taxes on revenue from cloud services sold outside India through local centers until 2047. Google, Microsoft, and Amazon have already pledged $10 billion for new AI hubs and data center capacities in India.
Critics warn that domestic cloud firms could remain low-profit intermediaries, and even with tax incentives, without reliable electricity and urban water solutions, India may become a country with generous tax benefits but limited capacity to actually run GPUs.
In Brief: Tech World Highlights
- Prime Intellect published research on recursive language models, an approach that enables AI agents to manage their own memory to perform tasks lasting weeks or months.
- Anthropic is purchasing up to one million Google TPUv7 AI chips from Broadcom, with the Ironwood chip line increasingly emerging as an alternative to Nvidia.
- xAI released a new upgrade to its creative platform Grok Imagine, with Elon Musk hinting at “another major update” in three weeks.
- Boston Dynamics and Google DeepMind announced a partnership to integrate Gemini Robotics AI models into humanoid Atlas robots.
- OpenAI researcher Jerry Tworek announced he is leaving the company after seven years, during which he contributed to early programming systems and led the AI reasoning team.
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