Former Business head of Tech Mahindra Jagdish Mitra has recently established an AI startup with an initial investment of 65-80crore. The startups is all set to start its commercial operations in coming three months.

After the resignation of CP Gurnani, one of the competitors for the post, Mitra said, "We will start going to customers in 8-12 months. Initially, we will invest USD 8-10 million. Cost arbitrage factor, driven by manpower, is going to be seriously impacted. It will be driven by values.

Mitra who already has moved out from Tech Mahindra also added, “We need to move from a cost-driven proposition to a value-driven proposition. We are going to focus on value proposition. Our firm will start operations within a quarter."

Mitra did not disclose the name of the company but informed that, the company will be focusing on manufacturing, retail, and sportstech and operate both from the US as well as India.

He said that, majority of the companies are not willing to develop chatGPT models as it will cost a huge sum of money. So, the main focus of the company will be on short language models and delivering value in factory output.

He further added, "There should be a share in the value of outcome that the AI model achieves in factory output. The future of the tech industry is not about the cost of resources developing AI models but it will have to be based on the value it delivers."

He claimed that, his firm will look into using AI for enhancing the productivity. He added, "I have no issue if a coder is using AI. I don't want to challenge his intellect but look at enhancing productivity. Every industry will use AI for value addition and improve productivity. My go-to market strategy will be with SAAS (software as a service) and firms that have less than $2 billion revenue.”