Artificial intelligence – AI is the future. It will replace or locked of way of thinking and the way things are being done and the entire approach of people towards better technological future. Big Tech companies are investing hundreds of billions of Dollars in data centre. However, an important problem remains as to whether the returns on investment would justify the same.

In this context it would be worthwhile to take a glimpse into worlds largest AI Company – Nividia Inc. For the quantum ending October 2025 is reported revenue of $ 57 Billion, profit of 32 Billion data- Centre Revenue $ 51.2 Billion thus the company made a spectacular performance. Nividia Inc also became the first listed company to surpass market cap of $ 5 Trillion in value which is more than the size of all economies of the world except that of US and China. It may further may noted that GPU (Graphic Processing Unit) is the most powerful engine driving AI. GPUs demand is spreading and increasing worldwide. In this connection the main companies which matter most are Broadcom, Oracle, Microsoft, Amazon, Google and Meta. The entire spear revolves round the success of these companies, if things go wrong then the AI bubble will burst.

It may be noted that AI Zone is now set up in Riyadh Saudi Arabia with up to 1,50,000 accelerators thus making Saudi Arabia and UAE a major hub in the middle east. For India the AI is now changing the entire Eco System. Companies like Reliance Industries and Tata Group have announced deep partnerships with Nividia. Thus, there would be large-scale AI Infrastructure and AI Supercomputer base which would support many Indian enterprises and assists Tata.
The impact of AI Capex is so large that it has contributed 0.5% to the USGBT growth in 2025.

Role of India :
Artificial intelligences are distractor as well as it affords a lot of opportunities. It is a boom but at the same time brings forward a lot of dangers. It is a big transforming agent which will change India’s household and the thinking and investment pattern of individuals across the country. First it is to be examined whether the bubble is real or just an illusion. First therefore let us consider what is a bubble. Bubble implies that valuations are very high and that the shares / stocks are over valued and stretched. It also implies that there is over investment and the tech spending is very high causing built up of investment acceleration which could burst the bubble.

There is overleverage and ownership in equity is at a very high level of text stocks. Thus what causes the bubble to burst would be when people put a lot of money in equity investments but there is very little return. There is also fear that jobs would be taken away and the interest factor of the banks. There is fear that AI could abolish all entry – level jobs.

India’s Global Capability Centres (GCC) are training its own employees to meet the AI challenge. AI Companies are struggling with limited supply of specialists in the fast changing skill environment. To accelerate AI adoption it is required to train Indian personnel. We have to focus on transforming processes and building internal AI capabilities to meet various challenges. By 2027 nearly 40% of tech skills employed now would be obsolete.
There is another major concern of Data Centre Industry that it has to take multiple Government permissions which is a major hassle for establishments of new units. India’s customers are also spending huge amounts on AI capabilities. Customers are ready to spend for quality and tailor made needs. It is pertinent to point out that Accel and Google have teamed upto gather to upto dollars to million in AI start ups in India.

AI is driving Enovation in India also. The government has launched a rupees 10000 crores India mission for promoting AI. It also takes care of Corporate sector, Health care sector and education. Thus, AI adoption has got a big Government boost.

AI’s Role in Judiciary :
AI is extremely useful and a major user in judiciary. Today when judges have large number of cases everyday to dispose off use of AI would give them important and major points of the case. It also gives the gist and summary of the case and the provisions involved. In the Supreme Court the Judges are assisting by AI translations covering 22 official languages. It also assists in translation from English into Hindi. Thus, Artificial Intelligence is a great help for the judicial system.

Impact on stock market:
Globally AI based companies have got very high valuations and have out performed conventional stocks. However, that is not the case in India. The Indian listed IT Companies have not out performed other stocks or the market because AI has not still caught up in India. As the explosion of AI will increase the stock market would the Indian IT stocks would then only improved. It may further be noted that spending of big tech companies into AI has resulted into huge AI debts. Investors are wondering whether the massive spend and investments in AI will really pay off in the near future. Many AI companies to meet finance have resorted to mega bond offerings. This is more prevalent in US specially in companies like Alphabet INC and Meta Platforms. It is predicting that very soon there would be 1.5 Trillion debt in the US of all the AI companies. If, the returns do not pay off the bubble can burst. Thus, one has to be careful in investment in Artificial Intelligence as an investment since the Capex is used to justify the returns.

The future of the world will now depend on AI and its new discoveries. One has to plan once investments and the potential returns associated with modern discovery. India is moving fast towards AI future and we all have to be prepared and ready for the same.

Posted on: December 2nd, 2025