Krutrim, India’s first GenAI unicorn, is pivoting from model development to cloud services. The move comes after months of quiet and a series of layoffs, as the company reallocates resources amid tough economics.

Founded by Bhavish Aggarwal, who also leads Ola and Ola Electric, Krutrim had ambitious plans to build domestic alternatives. However, it’s now focusing on cloud services, citing growing demand from enterprise customers in sectors like telecom, financial services, and healthcare.

The shift is commercially sensible, according to Sanchit Vir Gogia of Greyhound Research. Yet, the company’s profitability claims will need scrutiny. Meanwhile, rivals continue to innovate, with Sarvam recently signing a partnership with Pixxel for an AI-driven orbital data center.

This move underscores that infrastructure could be more viable in India’s current AI landscape. Whether this is a temporary strategy or a long-term shift remains to be seen, as the race to build competitive models persists.