Wake up call: Uday Kotak tells India Inc IPL is over, now get back to business after Google raises $80 bn
Uday Kotak cited Google's $80 billion capital raise to argue that Indian companies must invest for the future. His remarks sparked agreement online and renewed focus on how AI is reshaping business priorities.
Earlier this week, Google’s parent company Alphabet announced that it was raising $80 billion to fuel its AI spending plans. The company plans to spend upwards of $180 billion this year alone, largely on AI. According to Uday Kotak, founder and director of Kotak Mahindra Bank, this should come as a wake up call to the Indian business sector on investing in the future.
On X, Uday Kotak wrote that Google is a massive company with healthy financials, yet it was raising huge funds to invest in AI. Kotak explained, “Google annual profit is $160 bn, last quarter $62 bn, and market cap $4.5 trillion.” He claimed that these figures from Google alone are “close to total profits and market cap of all Indian listed companies put together.”
IPL is done, now time for business
The Kotak Mahindra Bank chief claimed that it was time for India’s business to wake up. He added, “It’s a wake up call to all companies to invest into the future, whatever the present may be.”
Uday Kotak seems to have taken a subtle dig at Indian businesses who have been largely focused on the IPL for the past two months. He said, “Now that IPL is done and dusted, time for India to focus on business of business.” The IPL concluded on May 31.
Kotak likely hinted that Indian businesses now needed to think about long-term investments at a time when the global economy is changing due to AI, instead of pouring money into cricket. Though he did not name any company in particular.
Keep in mind that the Indian IT sector, which has largely thrived on providing SaaS – Software-as-a-Service – has been facing fears of a SaaSpocalypse due to AI.
The shares of IT majors like Infosys, TCS and Wipro often get impacted when a new AI tool from Anthropic or OpenAI is released. And Indian IT companies have been criticised for missing the AI train, despite Infosys initially investing $3 million in OpenAI over a decade ago.
Today, OpenAI has a private valuation of $852 billion. On the other hand, the combined value of four Indian IT majors – TCS, Infosys, Wipro, and HCLTech hovers around $250 billion.
Anthropic, an AI startup that was founded just five years ago, is seeking an IPO with a $1 trillion valuation.
Internet agrees with Uday Kotak
On X, many users agreed with Kotak’s comments, particularly when it comes to leaving behind cricket and focusing on business. One person claimed that Uday Kotak was finally saying something that was in the minds of many Indians. The user commented, “India's prominent industrialist Uday Kotak is now openly expressing his unease and concern regarding Indian companies. By referencing the IPL, he has conveyed a great deal through subtle hints.”
Another person wondered if Uday Kotak was “subtweeting” major Indian businesses. The person wrote, “‘Now that IPL is done and dusted’, subtweeting all the big biz families eh?” Subtweeting refers to posting a message for someone without directly mentioning them.
Though one user pointed out that the US did not stop innovating because of its major sporting leagues, something that Indians may need to learn.
The user explained, “This one by @udaykotak hits hard on how far we have to go. Not that the Americans stopped NFL, MLB or NBA while their businesses grew.”
Earlier this week, Google’s parent company Alphabet announced that it was raising $80 billion to fuel its AI spending plans. The company plans to spend upwards of $180 billion this year alone, largely on AI. According to Uday Kotak, founder and director of Kotak Mahindra Bank, this should come as a wake up call to the Indian business sector on investing in the future.
On X, Uday Kotak wrote that Google is a massive company with healthy financials, yet it was raising huge funds to invest in AI. Kotak explained, “Google annual profit is $160 bn, last quarter $62 bn, and market cap $4.5 trillion.” He claimed that these figures from Google alone are “close to total profits and market cap of all Indian listed companies put together.”
IPL is done, now time for business
The Kotak Mahindra Bank chief claimed that it was time for India’s business to wake up. He added, “It’s a wake up call to all companies to invest into the future, whatever the present may be.”
Uday Kotak seems to have taken a subtle dig at Indian businesses who have been largely focused on the IPL for the past two months. He said, “Now that IPL is done and dusted, time for India to focus on business of business.” The IPL concluded on May 31.
Kotak likely hinted that Indian businesses now needed to think about long-term investments at a time when the global economy is changing due to AI, instead of pouring money into cricket. Though he did not name any company in particular.
Keep in mind that the Indian IT sector, which has largely thrived on providing SaaS – Software-as-a-Service – has been facing fears of a SaaSpocalypse due to AI.
The shares of IT majors like Infosys, TCS and Wipro often get impacted when a new AI tool from Anthropic or OpenAI is released. And Indian IT companies have been criticised for missing the AI train, despite Infosys initially investing $3 million in OpenAI over a decade ago.
Today, OpenAI has a private valuation of $852 billion. On the other hand, the combined value of four Indian IT majors – TCS, Infosys, Wipro, and HCLTech hovers around $250 billion.
Anthropic, an AI startup that was founded just five years ago, is seeking an IPO with a $1 trillion valuation.
Internet agrees with Uday Kotak
On X, many users agreed with Kotak’s comments, particularly when it comes to leaving behind cricket and focusing on business. One person claimed that Uday Kotak was finally saying something that was in the minds of many Indians. The user commented, “India's prominent industrialist Uday Kotak is now openly expressing his unease and concern regarding Indian companies. By referencing the IPL, he has conveyed a great deal through subtle hints.”
Another person wondered if Uday Kotak was “subtweeting” major Indian businesses. The person wrote, “‘Now that IPL is done and dusted’, subtweeting all the big biz families eh?” Subtweeting refers to posting a message for someone without directly mentioning them.
Though one user pointed out that the US did not stop innovating because of its major sporting leagues, something that Indians may need to learn.
The user explained, “This one by @udaykotak hits hard on how far we have to go. Not that the Americans stopped NFL, MLB or NBA while their businesses grew.”
