Bhavish Aggarwal-led AI startup Krutrim has shifted focus from building large language models and AI chips to cloud infrastructure services, marking a major change in strategy less than two years after becoming India’s first AI unicorn, according to an Economic Times report.

The company said it paused work on chip design and foundation AI models during a business realignment in late 2025 and moved capital and staff toward AI cloud services. Krutrim now says it operates a full-stack AI cloud platform built in-house for enterprise customers.

The company reported around Rs 300 crore in revenue for FY26, nearly three times higher than the previous year, along with its first annual net profit. It said profit after tax margin crossed 10%.

“The company has reached an important milestone of being profitable, self-funded, and gaining market traction. Our AI cloud is built for Indian enterprises, by Indian engineers. The external client momentum we are seeing validates the depth of our platform,” a company spokesperson said.

From AI models to cloud services: The shift marks a sharp change from Krutrim’s earlier push into AI models and consumer AI products. Since 2024, the company has launched AI assistants, multilingual language models, translation tools, and cloud infrastructure services while positioning itself as a full-stack Indian AI company. It had also announced plans to build its own AI ecosystem, including models, cloud infrastructure, and chip-related capabilities.

However, several of Krutrim’s AI products had faced criticism over inaccurate responses, political bias concerns, and limited public technical documentation around the company’s model claims. During the beta launch of its chatbot in 2024, users had reported factual errors and misleading responses, including incorrect historical answers and confusion over the chatbot’s origin.

Weeks ago, Ola-owned Krutrim also quietly took down its AI assistant ‘Kruti’, which had been launched in 2025 as an agentic AI product for tasks such as cab booking, bill payments, food ordering, image generation, and research. The chatbot was removed from app stores and became inaccessible on the web, though the company did not publicly announce its shutdown.

Enterprise push and funding: Krutrim said it currently serves more than 25 enterprise customers across sectors, including telecom, finance, healthcare, logistics, manufacturing, and consumer internet services. It also claimed most of its GPU computing capacity has already been committed to enterprise workloads.

The pivot comes months after the Ola group moved its workloads to Krutrim Cloud and ended its use of Microsoft Azure. In May 2025, Aggarwal had posted on X: “As committed, Azure spend is now 0. All workloads on Krutrim Cloud. Within a week.”

Krutrim was launched in 2024 by Ola founder Bhavish Aggarwal and raised $50 million at a $1 billion valuation. Earlier in 2025, Aggarwal had pledged shares of Ola Electric to fund Krutrim, though the company later said those pledges were released after repayment.

The company’s latest shift also reflects the growing cost and infrastructure pressures around building advanced AI models and semiconductor systems, areas currently dominated by a small number of global firms.

Read more:

• Ola Launches its Multilingual Artificial Intelligence Model Krutrim
• Ola Krutrim Announces AI Lab Launch To Mixed Reactions From Users
• Ola Krutrim now launched for the public in its beta version: Users report inaccurate answers