Reliance's OpenAI Investment, Ola & Uber’s Sorrows, and Rekha Jhunjhunwala‘s Exit

A few months ago in Delhi, Sam Altman said India shouldn't try to create its own core AI models. It would be “hopeless,” he said. The remark sparked a wave of memes and mockery across Indian tech circles, with many taking it as an arrogant dismissal of India’s capabilities. Today, that same OpenAI, still led by Altman, is reportedly in talks to raise money from Reliance Industries, one of the powerful corporate house in the country.

For Reliance, it's an attempt to place itself right at the center of the global AI conversation. Mukesh Ambani has already shown us what scale means - in telecom, and then with retail. Building the world's biggest AI data center in Jamnagar and putting AI into products like Jio, Haptik, and Tira, plus their schools and hospitals, shows that AI is a huge priority for them. Reliance wants to control the core AI technology that will power India's digital future. And investing in OpenAI is a way to secure both the tech and the credibility that comes with it.

For OpenAI, India is impossible to ignore. We’re their second-biggest market after the US. Our internet population is vast and constantly growing. But we're a complex group. We speak 22 official languages, our data usage is inconsistent, and our cultures are very distinct. OpenAI needs India to become a truly worldwide company. India isn't important for selling their products, but also for getting valuable information, understanding local differences, and making their technology useful to people there. Reliance, with its reach across 500 million Jio users and deep retail networks, offers a fast track into all of that.

But as exciting as this deal sounds, it’s not without its problems. Let’s start with the most obvious: What happens to India’s sovereign AI dream?

For the last year, the government and private players have been working hard to build Indian foundational models. Companies like Sarvam AI and Krutrim have been raising money. CDAC is working on a local AI chip. The government has pledged over ₹2,000 crore to build public compute infrastructure.

Now imagine this: one of India’s biggest companies, one that has access to almost half a billion users, starts integrating OpenAI models deeply into everything it does. Will that leave any space for Indian AI companies to grow? Can local innovation survive against OpenAI's advanced tech and Reliance's massive influence?

We’ve seen this before in other sectors. When global platforms enter India through powerful local partners, smaller startups often get squeezed out. That’s the real risk here. The Indian AI ecosystem is still young. If the best talent gets absorbed by Reliance-OpenAI projects, and funding dries up for independent players, it may never mature.

There’s also the integration challenge. AI is powerful, but it's not perfect yet. Sometimes, AI models make up information or get facts wrong. Also, their behavior can be unpredictable once they're used in real-world situations. Embedding this into a massive, diverse ecosystem like Reliance’s, from telecom to retail to healthcare, isn’t going to be easy. There’s a reason Jio’s own team called AI “an untamed animal.” Real-world use is still full of friction. This isn’t plug-and-play, it’s months (or years) of deep integration work.

And then there’s public perception. Altman’s earlier comments won’t be forgotten easily. This deal might look like a U-turn, and people will ask: is this a strategic collaboration, or damage control wrapped in PR? For this to succeed, both parties must genuinely commit to each other and to helping the wider Indian economy.

So what can be done?

If Reliance truly wants to lead India’s AI journey, it shouldn’t stop at deploying OpenAI models. It should also invest in building India’s own foundational models. Use OpenAI to learn fast, but don’t stop there. Set up a fund to back local AI startups. Open up compute infra to Indian researchers. Collaborate with the public sector to develop open-source Indian language models. You build strong leaders by developing technology yourself, not by buying it from other countries.

And for OpenAI, this is a moment to go beyond numbers and show genuine intent. If India is your second-biggest market, treat it as a first-class citizen. Invest in local teams. Build for Indian languages. Open source what you can. And engage with the local developer and research communities.

AI's future won't be set by one place. It will be created by many people, all over the world, as they solve problems that matter to them. If this deal leads to more collaboration, more access, and more diversity in how AI is built and used, it could be historic. But if it ends up reinforcing the old model - where Silicon Valley leads and the rest follow, it will be a missed opportunity.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“No No No No Entry”: No Entry For Ola, Uber In Goa, Says Pramod Sawant

No entry for Ola and Uber in Goa, says CM Pramod Sawant - despite the state floating draft guidelines for app-based taxis.

The rules had promised licensing clarity, tariffs, and even incentives, but drew backlash from local taxi unions. For now, it’s a red light for aggregators and a green light for homegrown resistance.

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“Ye Kya Hua, Kaisa Hua”: Bike Taxis To Stop Plying On Karnataka Roads

Bike taxis in Karnataka have hit the brakes - officially. The High Court refused to lift the ban, citing the state’s silence on a proper regulatory policy.

With the June 15 deadline ticking out, services like Ola, Uber, and Rapido are off the roads, at least for now.

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“Big Bull Chala Exit Ki Sair”: Late Rakesh Jhunjhunwala’s Estate Exits Nazara

The Big Bull’s final move in gaming: Rakesh Jhunjhunwala’s estate has fully exited Nazara Technologies.

It sold off the remaining 5.07% stake - 13 lakh shares - for a hefty ₹159.27 Cr via open market trades. With that, Jhunjhunwala’s chapter in the online gaming major officially closes.

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“Bachha Samajh Ke Maaf Kiya”: FDA Revokes Suspension Of Zepto’s Dharavi Warehouse Licence

Zepto’s Dharavi warehouse is back in business after the FDA lifted its suspension. A follow-up inspection and compliance report did the trick, clearing the quick-commerce player to resume operations.

This comes weeks after the licence was yanked over serious food safety violations.

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“Adhunik Bharat Ki Nayi Soch”: Garuda Aerospace sets up agri-drones indigenisation facility near Chennai

Garuda Aerospace is going local with lift-off, by setting up an Agri-Drone Indigenisation facility near Chennai.

The new hub will design and build high-end drones on home turf, backing the Atmanirbhar Bharat mission. It’s a big step for Indian tech taking flight in the agri skies.

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1. OpenAI is eyeing a massive $40 Bn funding round, reportedly courting Reliance, Saudi PIF, and UAE’s MGX. The funds would supercharge its ‘Stargate’ infrastructure push and next-gen AI ambitions.
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2. Spinny has topped up its Series F round with a fresh $30M from WestBridge Capital, keeping its valuation steady at $1.5–$1.7B. The used car marketplace has now driven its total Series F haul to around $170M.
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