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Here’s a big leap into use of GenAI in Indian languages

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In a modest office in Bengaluru, a soft-spoken entrepreneur is charting an ambitious course to make India a powerhouse in generative artificial intelligence tailored for the nation’s linguistic diversity.
Vivek Raghavan, the co-founder of Sarvam AI, believes the key to unlocking AI’s potential in India lies in developing models that can understand and communicate in the country’s many regional languages through voice interfaces.
“Indians will interact with generative AI through voice in their own language,” Raghavan tells us.
At the heart of Sarvam’s approach is the idea that while massive language models like GPT-4o and Gemini 1.5 offer impressive capabilities, much of what people need can be achieved with far smaller, more efficient models finetuned for specific tasks and linguistic contexts.
“If I want to do something that’s relevant millions of times a day, I can’t use those large models. It’s too expensive and not accurate enough,” Raghavan explains. “For a use case like customer support for a telecom company, I want a smaller, purpose-built model that outperforms bigger models on that task.”

GenAI

To this end, Sarvam just announced Sarvam 2B, an open-source 2 billion parameter model trained from scratch on trillions of tokens of Indian language data, including synthetically generated text. At just a fraction of the size of models like GPT-4, and at a fraction of its cost, Sarvam 2B promises to deliver superior performance on Indian language tasks like translation, transliteration, and summarisation. And it’s does it for 10 Indian languages.
The company also unveiled “Sarvam Agents” — multilingual, voiceenabled AI assistants that can perform actions like booking tickets or scheduling meetings through telephony, WhatsApp or in-app interfaces. The cost? As low as 1 rupee per minute.
In a demo we saw, a voice AI agent deployed on the phone line of a healthcare customer starts by saying: “Namaste, Sarvam Saathi tak pahunchne ke liye, dhanyavad. Aap ki kya madad kar sakti hoon? (Thank you for reaching out to Sarvam. How can I help you?). Then starts a seamless conversation in Hinglish with a user who has a dental issue. The bot was able to understand even uniquely Indian utterances. There was no latency. If the user interrupted the bot, the bot handled that beautifully. It understood all queries, and it even tually even booked an appointment for the user with a doctor for the preferred date.
Unconventional beginnings
Raghavan’s path to founding Sarvam is unconventional. For 15 years, he worked as a volunteer on India’s massive Aadhaar digital identity project. This experience, he says, gave him the drive to leverage technology for societal impact. “I see a future where every child can get a quality education (via AI), which was not possible before this,” he says, echoing a point made by Indian-American entrepreneur & venture capitalist to TOI earlier this week.
He bumped into the Indian lan guage AI problem over a decade ago when the Supreme Court sought a way to translate judgments into regional languages. This led him to advise the government’s Bhashini initiative – India’s AI-led language translation platform, launched as part of the Digital India vision.
The decision to finally form a for-profit startup, rather than continue in the public or non-profit sector, was driven by the need for speed and scale. “We need to move faster,” Raghavan explains. “This is a space where globally, things are moving very fast.”
Sarvam’s approach reflects Raghavan’s belief in “sovereign AI” — models tailored for Indian contexts that can be deployed on-premises by enterprises concerned about data privacy. It’s also about giving Indian researchers the tools to push the boundaries of language AI.
The company is open-sourcing the audio language model that’s built on top of Meta’s open-source Llama model. “We want the Indian AI ecosystem to make progress,” Raghavan says.
Fundamental innovations
Under the hood, Sarvam has pioneered techniques to reduce the “tokenizer tax” that makes representing Indian language text inefficient in standard models. In AI and ML parlance, a token can represent an entire word or just a single character, Indian languages routinely fall prey to the negative effects of the second category, because the number of tokens it usually takes to represent an Indian language is far higher than say for a language like English. Which is why methods to reduce the tokenizer tax of using an Indian language was important, says Raghavan. Fewer tokens mean a smaller, more efficient model.
The company also embraced synthetic data generation as a way to augment limited real-world datasets for Indian languages. “We’ve built models to generate data and we’re using that data to train models,” Raghavan says. Sarvam’s 2B model was trained on a cluster provided by Indian company Yotta.
Looking ahead, Raghavan sees opportunities to apply generative AI to domains rich in Indian knowledge like Ayurveda, where models could synthesise information from ancient texts into a coherent, referenceable corpus.





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US jobless claims fall to lowest since May in solid labor market

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Applications for US unemployment benefits fell to the lowest level since May, indicating the job market remains healthy despite a slowdown in hiring.
Initial claims decreased by 12,000 to 219,000 in the week ended September 14, according to Labor Department data released Thursday. That was below all estimates in a Bloomberg survey of economists. The period also corresponds with the so-called reference week when the survey is conducted for the September employment report.
Continuing claims, a proxy for the number of people receiving benefits, also dropped in the previous week, to the lowest in three months.
The four-week moving average, a metric that helps smooth out volatility in the data, fell to 227,500, the lowest since June.
What Bloomberg economics says…
“Initial jobless claims declined more than expected in the survey week for September’s employment report, due in part to difficulty adjusting the data around a major holiday like Labor Day. Claims tend to be depressed in holiday-shortened weeks, then rebound the following week — so the current data have limited value as a guide to September’s payroll print,” said Eliza Winger.
Claims for unemployment benefits have remained subdued in recent months even as labor demand cooled. The US central bank’s decision to lower interest rates by a half percentage point this week reflected policymakers’ intention to maintain what Federal Reserve Chair Jerome Powell described as “still a solid” labor market.
“We’re trying to achieve a situation where we restore price stability without the kind of painful increase in unemployment that has come sometimes with disinflation,” Powell said during a press conference Wednesday following the rate-cut announcement.
Initial claims, before adjustment for seasonal factors, rose by 6,436 to 184,845. Texas, New York and California saw the largest increases. Applications in Massachusetts fell by the most since the end of April.





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Stock market today: BSE Sensex hits fresh lifetime high, goes above 83,600; Nifty50 above 25,550

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Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, surged in trade on Friday to hit lifetime highs following a more than expected 50 basis points rate cut by the US Federal Reserve. While BSE Sensex climbed above 83,600, Nifty50 was above 25,550. At 9:20 AM, BSE Sensex was trading at 83,636.77, up 689 points or 0.83%. Nifty50 was at 25,571.70, up 194 points or 0.77%.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal, says, “A 25bps rate cut is already discounted and can lead to profit booking in the market.However, a 50bps rate cut by the Fed could bring some cheer to market sentiments. Also, Fed commentary will be important as it will give clarity on the quantum and duration of the rate cut cycle. We expect the market to remain volatile in the near term with rate-sensitive sectors in focus.”
Nagaraj Shetti of HDFC Securities noted that the short-term trend of Nifty remains positive with range-bound action, and any dips to the support levels of 25,200-25,100 could present a buying opportunity. A decisive move above 25,500 levels might propel Nifty towards higher targets.
In the global markets, U.S. stocks closed with modest losses on Wednesday after the Federal Reserve cut interest rates by 50 basis points, exceeding expectations. The S&P 500 futures rose 0.5%, while Japan’s Topix gained 2%, and Australia’s S&P/ASX 200 rose 0.2%. Euro Stoxx 50 futures also climbed 0.7%.
In the forex market, the euro, Japanese yen, and offshore yuan experienced slight declines against the US dollar. Oil prices fell in Asian trading on Thursday following the larger-than-expected Federal Reserve interest rate cut, which raised concerns about the U.S. economy.
Several stocks are in the F&O ban period today, including Balrampur Chini Mills, Hindustan Copper, GNFC, RBL Bank, PNB, Bandhan Bank, Biocon, Birlasoft, LIC Housing Finance, and Granules. Foreign portfolio investors turned net buyers with Rs 1154 crore, while domestic institutional investors bought shares worth Rs 152 crore. The net long position of FIIs increased from Rs 2.2 lakh crore on Tuesday to Rs 2.37 lakh crore on Wednesday.





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US stocks dip despite larger Fed interest rate cut

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On Wednesday, Wall Street stocks experienced a slight decline following the Federal Reserve’s announcement of a half-percentage-point interest rate cut. The central bank’s chair, Jerome Powell, assured a “careful” approach to lowering rates, acknowledging the progress made in combating inflation in the United States.
The Federal Reserve’s decision was supported by an 11-to-1 vote in favor of reducing the benchmark rate to a range between 4.75 percent and 5.00 percent.The larger-than-expected rate cut surprised some analysts who had anticipated a quarter-point decrease. Additionally, policymakers projected an extra half-point of cuts by the end of this year and a further percentage point of cuts in 2025.
Meanwhile, major US stock indices fluctuated between positive and negative territory following the Fed’s decision. The Dow Jones Industrial Average fell 103.08 points, or 0.25%, to 41,503.10, the S&P 500 lost 16.32 points, or 0.29%, to 5,618.26 and the Nasdaq Composite lost 54.76 points, or 0.31%, to 17,573.30. Briefing.com noted that the Fed’s decision would be met “with both elation and criticism,” as the larger rate cut could appease those who believe the Fed is lagging in preventing a hard landing. However, it may also face criticism from those who think the more aggressive rate cut was unwarranted given broader economic trends, with concerns that it could reignite inflation.
During a news conference, Powell described the US economy as being in “good shape,” highlighting lower inflation and robust growth. He emphasized the Fed’s desire to maintain a strong labor market. The decision to implement a larger rate cut was based on various economic data points, leading policymakers to conclude that monetary decisions had been “appropriately restrictive” and that a “more neutral” approach was now necessary. Powell signaled that investors should expect more interest rate cuts in the future but cautioned that the central bank would proceed carefully and evaluate the matter “meeting by meeting.”
In Europe, stock markets in Paris and London closed lower, while Frankfurt ended the day flat. The dollar initially experienced a significant drop against the euro and other currencies but later recovered. The Fed now anticipates only a half-percentage point of cuts remaining in 2024, which is lower than the three-quarter percentage point that traders had been expecting. Traders are now focusing on the upcoming announcement by the Bank of England on Thursday. The central bank is expected to maintain its current stance following a regular meeting, as official data released on Wednesday showed that British annual inflation remained at 2.2 percent in August.
(With inputs from agencies)





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