Krutrim, India's first GenAI unicorn, shifts from AI model development to cloud services following a business overhaul in late 2025.

Krutrim said it was moving toward cloud services after a business overhaul in late 2025 that included reallocating capital and talent and pausing chip design efforts. The startup has not made significant product announcements in recent months and did not participate in India's AI Impact Summit in New Delhi.

The company generated about ₹3 billion (around $31.52 million) in revenue in the financial year 2026, a threefold increase from a year earlier, along with its first annual net profit and margins exceeding 10%. Krutrim said it is seeing growing demand for its AI cloud services, with more than 25 enterprise customers across sectors including telecom, financial services, and healthcare, with most of its GPU compute capacity already committed to external workloads.

The shift reflects tougher economics of building large-scale AI systems. Sanchit Vir Gogia, chief analyst at Greyhound Research, cautioned that Krutrim's profitability claims would need to be tested, stating 'The standard of proof must rise with the claim.' The startup pulled its Kruti AI assistant app from app stores in April and has cut more than 200 roles across multiple rounds over the past year.