Daybreak Big AI is writing India’s startup rules faster than the regulator can read them
12 snips
Nov 26, 2025 India's AI startup scene is buzzing with both excitement and anxiety. Founders fear that major platforms could outpace them, raising competition worries. The impact of synced pricing algorithms on ride-hailing markets adds another layer of tension. Limited oversight from the Competition Commission of India complicates matters, as regulatory capacity struggles to keep up. Meanwhile, middleware startups like Karthi's in healthcare face significant risks. The rapid pace of big AI advancements continues to challenge startups, making the future more uncertain.
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Founder Fears The Platform, Not Patients
- Karthi Purshottam built OneHat, a healthcare startup that runs on AI but doesn't own the base models it depends on.
- He's more worried about whether the AI providers will trust or keep supporting him than about patient trust.
Algorithms Can Collude Without Humans
- When pricing algorithms learn from the same data they can react similarly and create tacit collusion without humans coordinating.
- Regulators used to chase boardrooms, not lines of code, creating a blind spot for algorithmic coordination.
Swapping Models Isn't Enough To Win
- Karthi tested multiple AI stacks and built modular systems so he can swap models when required, but accuracy remains a challenge.
- Shashank K observed that every major platform release forces about ten companies to shut down overnight.