India's hidden AI winners as data-centre infrastructure demand surges
The country may lack AI champions, but the firms building the infrastructure behind the boom are quietly becoming stock market winners.
Conflicting definitions across ministries pose a major challenge for artificial intelligence (AI) applications in government, with the Centre now working to create common classifications and standards that can make public datasets interoperable, Saurabh Garg, secretary, Ministry of Statistics and Programme Implementation (MoSPI), said on Thursday.
Speaking at an event on artificial intelligence and digital public infrastructure (DPI) organised by the National Council of Applied Economic Research (NCAER), Garg said India had largely addressed the challenge of systems exchanging data through common APIs and digital platforms, but still needed to tackle what he described as “semantic interoperability” — ensuring that different government datasets use common definitions, classifications and identifiers that AI systems can understand.
“I think where we need to work more is on the semantic interoperability that AI systems or artificial intelligence can understand the context of the definitions and the classifications. And this is extremely important because if a definition or maybe any concept by two systems are different, then those two systems can’t talk to each other,” said Garg. “Semantics is extremely important and that’s one area that we are working on,” he added.
He cited the example of “pucca houses”, noting that different government departments use different criteria to define the term. While some ministries focus on the nature of walls, others consider roofing standards, and still others take flooring into account because of its implications for public health. Such differences can create complications when designing and implementing welfare programmes aimed at assisting households without permanent housing, he said.
The government is therefore working on standardising classifications, identifiers and metadata across datasets as part of a broader effort to make public data AI-ready.
Garg said India had already built the foundations of digital public infrastructure through identity, payments and consent-based data-sharing systems such as Aadhaar, UPI, DigiLocker and Account Aggregator. The next phase, he said, would involve creating the data architecture needed to support AI-driven applications and public services.
“The raw material of AI is data. You have energy, you have chips, you have models, but without data, AI is really not there. And we need to ensure that data is interoperable, harmonised and machine-readable. That is something which we are still grappling with, at least in India and many other countries, too,” Garg said, arguing that access to harmonised, machine-readable and trustworthy data would be critical to unlocking the technology’s economic and social benefits.
According to him, government data represents a particularly valuable resource because of its scale and its potential to be used for public benefit. However, datasets remain fragmented across departments, stored in different formats and governed by varying standards, making integration difficult.
To address these challenges, the government has identified priority datasets, common identifiers and internationally recognised classifications that can serve as the basis for interoperability. It is also working on data-sharing protocols, quality assessment frameworks and metadata standards, he said.
Garg added that the objective was to ensure that government data adheres to the FAIR principles — making it findable, accessible, interoperable and reusable — while maintaining safeguards for privacy and confidentiality under existing laws.
“There needs to be a basic quality assessment; otherwise, the credibility of data is suspect. And it is this data organisation within the government that is an extremely high priority for us,” he said.
The Reserve Bank of India (RBI) on Friday said it is mindfully prepared for handling cyber security threats related to Mythos and has issued an advisory to regulated entities for their preparedness.
“We have issued the required advisories. We remain fully prepared in terms of handling cyber security threats of this nature as well as conventional threats,” said Deputy Governor Swaminathan J at the post-monetary policy press meet.
Anthropic has expanded the availability of its Mythos AI models to over 15 more countries, including India. According to Swaminathan, this project is with select corporates and financial entities having access to the project. However, details are still fully awaited.
Mythos is an artificial intelligence-based cyber security system developed by Anthropic to detect software vulnerabilities and emerging cyber risks before malicious actors can exploit them.
“Once this opportunity opens up, how exactly to make use of it in consultation with the government and with other regulators, we will take further steps,” he said.
This system has been engaging our attention, both at the government level and at the financial sector inter-regulatory forum level. RBI, in consultation with the government and other regulators, will take further steps once the contours of participation become clear.
“We are mindfully prepared in terms of handling cyber security threats of this nature as well as the conventional nature. And we will keep the market informed once we have full details as to how we plan to handle this,” he said.
Astronauts aboard the International Space Station were ordered by NASA to shelter in their spacecraft and prepare for potential evacuation on Friday as a Russian crew attempts to fix a worsening leak of air on its portion of the orbital laboratory, NASA said.
The four astronauts of NASA’s Crew-12 mission on the station – two U.S. astronauts, a French astronaut and Russian cosmonaut – got orders from NASA mission control at 9:04 a.m. ET Monday (1304 GMT) to enter their Crew Dragon spacecraft docked to the station and don their spacesuits in case the air leak warrants an emergency evacuation, a NASA official said.
NASA and Russia’s space agency Roscosmos, the station’s two primary operators, have debated for months over the cause and potential fixes of small air leaks aboard Russia’s Zvezda service module, a key structure of the football field-sized laboratory.
The air leaks have been relatively minor in recent months but escalated on Monday from a pound of air per day to two pounds, according to a senior NASA official who asked not to be named.
First Published: Jun 05 2026 | 8:27 PM IST
Anthropic is calling on major artificial intelligence labs to consider a coordinated and verifiable pause in development, warning that rapid advances in the technology could soon allow AI systems to improve themselves faster than society can manage the risks.
The Claude creator said AI’s ability to complete tasks on its own has been doubling roughly every four months and it was headed for “recursive self-improvement”, the point at which the technology can improve without human intervention.
“If systems are capable of fully building their own successors, the ways we secure them, monitor them, and shape their behavior all grow much more important,” the startup said in a lengthy blog post on Thursday, adding that a pause would allow society to “deal with its immense implications.” “We are not there yet, and recursive self-improvement is not inevitable. But it could come sooner than most institutions are prepared for,” Anthropic co-founder Jack Clark and Anthropic Institute lead Marina Favaro wrote in the post.
Fears that advanced AI systems may get out of human control and cause societal harm have risen as the technology becomes increasingly capable. Anthropic’s own Mythos model sent shockwaves through industries including banking and software earlier this year with its ability to find vulnerabilities in existing code.
But regulation has been slow, especially in the US where most leading AI labs are based. A Trump administration executive order earlier this week put the onus on the labs themselves, asking them to voluntarily submit their most capable models for government cybersecurity testing before public release.
AI researchers have also urged a pause before but had little success. Elon Musk, who owns AI lab xAI, was among backers of a 2023 push by the non-profit Future of Life Institute to halt AI development for six months to allow time for safety guardrails.
Anthropic has long positioned itself as a safety-focused AI lab. Earlier this year, it refused to let the US military use its models for domestic surveillance and fully autonomous weapons, prompting backlash from the government which put it on a national security blacklist, set to take effect later in 2026.
Reuters reported on Friday the dispute was showing signs of easing across parts of the US government.
Still, Anthropic has continued to release increasingly powerful models and in February walked back a key safety pledge, saying that it would no longer hold back potentially dangerous AI if rivals were close to matching its capabilities.
It was recently valued at $965 billion in a massive funding round and confidentially filed for a US initial public offering on Monday, putting it ahead of rival OpenAI in both valuation and the race to secure crucial funding.
COORDINATED ACTION
Anthropic’s Thursday post cautioned that unilateral or poorly coordinated slowdowns could backfire if less cautious actors continue advancing, potentially reducing overall safety.
It said that a meaningful pause would require agreement among “multiple well-resourced labs” operating at the technological frontier, as well as rules on what conditions would trigger or lift such a pause and who would oversee it.
“A unilateral pause by one lab, by contrast, is achievable immediately, but accomplishes much less: it would change who the front-runner is, but it would not create the wider deliberative process that is currently missing,” the startup said.
Its research arm, Anthropic Institute, plans to study systems needed to support a slowdown and in the coming months will convene policymakers, researchers, civil society groups and rival AI firms to discuss managing risks such as recursive self-improvement.
OpenAI, xAI, Alphabet, Meta Platforms and France’s Mistral did not immediately respond to requests for comment on whether they would join the call.
For nearly a decade, India’s net neutrality framework has largely focused on one concern: preventing telecom operators from favouring certain websites, apps or online services over others. The debate that shaped India’s internet policy revolved around questions such as whether telecom operators could prioritise one app over another, slow down specific services, or offer differential pricing linked to content.
Airtel’s new Priority Postpaid plans raise a different question altogether: can telecom operators offer a better network experience to one group of subscribers if they are willing to pay for it?
The distinction may seem subtle, but it sits at the heart of the debate surrounding Airtel’s use of 5G network slicing technology. It also helps explain why regulators, telecom operators and policy experts appear to be viewing the issue differently from earlier net neutrality controversies.
The promise is not necessarily higher internet speeds. Rather, Airtel says customers on these plans will receive greater consistency and reliability even when the network is under stress.
According to the company, the service operates through a dedicated network slice while remaining completely content-neutral.
In submissions to the government, Airtel argued that the implementation involves no blocking, throttling, preferential treatment of applications, or zero-rating. The company also maintained that the service does not degrade the experience of prepaid customers, who account for around 92 per cent of its customer base and contribute roughly 88 per cent of its revenue.
Airtel further stated that its overall 5G capacity utilisation during busy hours is around 38 per cent. Within that, postpaid traffic accounts for only about 4 per cent and may rise to roughly 6 per cent after the priority slice is introduced.
Much of the discussion around Airtel’s plans has focused on whether they violate net neutrality. The more interesting question is why the answer appears to be different from earlier telecom controversies.
India’s net neutrality debates in the 2010s were largely centred on content discrimination. Regulators were concerned about whether telecom operators could favour certain websites, apps or online services over others.
The concern was whether a telecom operator could slow down one service, prioritise another, or offer differential treatment linked to the content being accessed.
Airtel’s Priority Postpaid plans do not neatly fit into that framework.
The company is not prioritising Netflix over YouTube, or WhatsApp over Telegram. Instead, the differentiation is occurring at the subscriber level.
The debate is no longer about whether different online services are treated differently. It is about whether different categories of users can receive different levels of network experience.
That shift is what makes the Airtel controversy different from previous net neutrality disputes.
To understand why this distinction exists, it is necessary to understand what network slicing actually is.
Network slicing allows telecom operators to create multiple virtual networks on top of the same physical network infrastructure.
A simple way to think about it is through a highway analogy.
Traditionally, all users travelled on the same highway. Traffic conditions could vary, but everyone shared the same road. With network slicing, telecom operators can create multiple virtual lanes on the same highway, each designed for a specific purpose.
One lane may be optimised for reliability, another for low latency, and another for specialised use cases.
According to industry reports, network slicing is a standard capability built into 5G architecture and is already being deployed in markets such as Singapore, the United States, the United Kingdom and Malaysia.
The technology itself is not the source of controversy. The debate begins when that capability is used to create differentiated consumer experiences.
Recent reports suggest that India’s telecom regulator is leaning towards the view that Airtel’s plans do not violate existing net neutrality norms.
According to a Business Standard report, TRAI’s examination found that the plans did not appear to degrade the quality of service or experience of prepaid users.
People familiar with the deliberations told the publication that net neutrality concerns generally arise when there is discrimination based on content, which does not appear to be the case here.
Another person cited by the publication said that the rules specify discrimination between customers of the same class, and that no such discrepancy had been identified so far.
The regulator is reportedly continuing to monitor implementation, but the emerging view appears to be that Airtel’s service remains within the boundaries of the current framework.
Understanding the regulatory debate requires looking at the framework itself.
India’s net neutrality regime rests primarily on two foundations.
The first is TRAI’s 2016 Prohibition of Discriminatory Tariffs for Data Services Regulations, which prohibit service providers from charging discriminatory tariffs based on content.
The second is the Department of Telecommunications’ 2018 net neutrality framework, which was subsequently operationalised through amendments to the Unified Licence and ISP licensing framework.
Clause 2.3 of the Unified Licence requires internet access services to follow a principle that restricts discrimination, restriction or interference in the treatment of content. The provision addresses practices such as blocking, degrading, slowing down, or granting preferential treatment to specific content.
The recurring theme across these provisions is content.
The framework was designed to prevent telecom operators from discriminating based on what users access online.
That focus made sense when the biggest concerns involved issues such as zero-rating, content prioritisation and differential treatment of internet services.
This is where Airtel’s Priority Postpaid plans have sparked a broader discussion.
The existing framework focuses extensively on content-based discrimination. It says comparatively little about subscriber-tier differentiation that remains content-neutral.
That does not automatically mean Airtel’s implementation violates the framework. In fact, Airtel’s defence rests precisely on the argument that all content, applications and online services continue to be treated equally.
However, network slicing introduces a different dimension to the debate.
The Airtel debate asks whether telecom operators can offer differentiated network experiences to different categories of subscribers while remaining content-neutral.
The distinction may appear technical, but it is central to understanding why regulators, telecom operators and policy observers are debating the issue.
Airtel’s defence of Priority Postpaid is not surprising.
More notable is the support that the broader concept of network slicing has received from across the telecom ecosystem.
In a letter to the Department of Telecommunications, Reliance Jio described network slicing-based service deployments as a legitimate exercise of 5G capabilities and argued that the existing regulatory framework permits such offerings.
Jio also stated that network slicing is a standardised 5G architectural capability that serves diverse connectivity requirements.
Industry body Cellular Operators Association of India (COAI) has similarly argued that slicing does not violate current net neutrality principles because it remains content-agnostic.
Former BSNL chairman Anupam Shrivastava also told ET Telecom that 5G slicing complies with current net neutrality frameworks because it treats applications equally and uses advanced spectrum optimisation.
The broad support is significant because it suggests the discussion extends beyond a single Airtel product.
A significant part of the telecom ecosystem appears to view network slicing as a legitimate 5G capability with long-term commercial potential.
The telecom industry’s support for network slicing is also linked to a larger commercial challenge.
Historically, telecom operators monetised voice calls, SMS services and data packs. While 5G has brought significant technological improvements, generating new revenue streams from those capabilities has been a persistent challenge.
Network slicing offers a different possibility.
Instead of simply selling larger data packs, operators could potentially offer differentiated levels of network reliability, latency, consistency or congestion protection.
This is one reason Airtel has consistently advocated network slicing as a major monetisation opportunity.
According to Business Standard, the company has described slicing as the only proven large-scale monetisation model for 5G and a foundational capability for future 6G networks.
Viewed through that lens, Priority Postpaid is not simply a new postpaid plan. It may also represent an early attempt to commercialise differentiated network performance as a consumer-facing product.
During a discussion hosted by digital news platform The Federal, telecom analyst Parag Kar argued that regulators must ensure premium users do not receive benefits at the expense of ordinary users.
He also highlighted an important distinction between wireless and fixed broadband networks. Unlike fibre networks, wireless systems operate within finite spectrum constraints, making capacity allocation a more sensitive issue.
Kar raised a broader concern: if network congestion becomes a persistent feature of mobile connectivity, operators may eventually be incentivised to monetise that congestion rather than eliminate it.
Others on the panel argued that the focus should be on ensuring a minimum quality standard for all users.
Tech policy researcher Pranesh Prakash argued that regulators should concentrate on maintaining and enforcing baseline quality-of-service standards rather than prohibiting all forms of service differentiation.
The discussion ultimately points to a broader policy question: if premium services are permitted, what safeguards should exist to ensure that ordinary users are not adversely affected?
The significance of Airtel’s launch extends beyond a single postpaid plan.
If regulators ultimately conclude that network slicing-based differentiation is fully compliant with existing rules, similar offerings could emerge across the industry.
That does not automatically mean ordinary users will receive worse service.
Airtel has maintained that its implementation does not degrade the experience of prepaid customers, and TRAI’s reported preliminary assessment appears to be moving in the same direction.
However, the emergence of premium network tiers would raise broader questions about how network quality should be priced, monitored and regulated in the 5G era.
For years, India’s net neutrality debate focused on whether telecom operators should be allowed to treat internet traffic differently.
Airtel’s Priority Postpaid plans have introduced a different question: should telecom operators be allowed to offer different levels of network experience to different categories of users?
That question may shape the next phase of India’s telecom policy debate long after the current controversy fades.