Krutrim, India’s first GenAI unicorn, is shifting from AI model development to cloud services after months of relative quiet on product updates — a move that reflects the tougher economics of building large-scale AI systems.

On Tuesday, Krutrim said it was moving toward cloud services, adding that the shift follows a business overhaul in late 2025 that included reallocating capital and talent and pausing chip design efforts. The update comes more than a year after the Bengaluru-based startup released its Krutrim-2 base model.

The move follows a period of limited public activity from Krutrim, which has not made any significant product announcements in recent months, with its last post on X dating back to December.…