Upstage’s Solar Pro 2 Outshines OpenAI Models as India Faces AI Gaps

- Upstage's Solar Pro 2 gains frontier LLM status, outperforming peers. - India's IT innovation gap sparks scrutiny despite top global talent. South Korea has made a significant breakthrough in the global artificial intelligence (AI) race, solidifying its position as a leader in the sector. On August 13, 2025, multiple outlets reported that South Korean startup Upstage launched the Solar Pro 2 large language model (LLM). This highly advanced “frontier model” outperformed products from established names like OpenAI and Anthropic in certain benchmarks. Upstage released the 30-billion-parameter model in July 2025, and it has since gained recognition for its superior performance. Meanwhile, analysts are directing attention to India's information technology sector. They question why the country has lagged in delivering similar AI breakthroughs, despite its world-class engineering talent. Bernstein Research identified a "concerning pattern" of innovation gaps in India, citing a reliance on foreign technologies and limited domestic innovation. Indian Commerce Minister Piyush Goyal and economist Neelkanth Mishra echoed this sentiment and highlighted significant “brain drain” as a contributing factor. Mishra noted that 26 of the top 30 computer science graduates from his IIT class have emigrated, primarily to the United States. India’s challenges also stem from structural factors. These include limited government financial support for startups, the dominance of large conglomerates that stifle smaller firms, and weak connections between academia and the private sector. Although venture capital investments in the country grew from $9.6 billion in 2023 to $13.7 billion in 2024, stakeholders still cite insufficient funding and other barriers that limit innovation. On the other hand, a coordinated national strategy with significant government support drives South Korea’s advancements in AI. The South Korean government has committed $70 billion to AI development, aiming to secure its position as one of the top three nations in the field. To retain top talent, these initiatives include offering to cover up to 85% of salaries for AI experts. The government also appointed a dedicated AI minister to oversee technological advancements. South Korea faces its own challenges, including talent retention and data center investments. Nevertheless, Upstage’s plans to build local data centers in global partner nations may further enhance the country’s standing in AI development.