This week in AI: Freshworks’ bet on being AI-first, Microsoft-OpenAI tensions flare up
From Freshworks’ AI push to cater mid-sized enterprises to signs of strain in Microsoft’s $13 billion partnership with OpenAI, AIStory brings a recap of major developments and emerging trends in the sector this week.
From Freshworks’ AI push to cater mid-sized enterprises to signs of strain in Microsoft’s $13 billion partnership with OpenAI, AIStory brings a recap of major developments and emerging trends in the sector this week.
Here’s a list of key stories:
Mid-market advantage: Freshworks CEO Dennis Woodside on staying ahead in the AI race
It’s been a little over a year since Dennis Woodside took the steering wheel at Freshworks, and he’s been swerving the Chennai-founded company into the fast lane of the software-as-a-service (SaaS) industry as artificial intelligence (AI) seeps into every business process. Like any other SaaS firm, AI has become central to Freshworks’ playbook too.
After taking the reins as CEO from Girish Mathrubootham, Woodside has configured the organisation chart to align with its AI-integrated services. Its product and engineering teams now sit inside an all-AI unit as the firm places a bet on specialised, low-friction automation, separating it from a crowded SaaS pack.
In an interaction with YourStory, Woodside explains how his approach to any new technology remains the same, why pricing Freddy AI Copilot seats at $29 a month makes sense, and the reasoning behind positioning Freshworks’ agents as the mid-market alternative to incumbents like ServiceNow and Salesforce.
We are working towards becoming IPO ready in the next 12-18 months: LeadSquared’s Prashant Singh
While some industry veterans warn of an “AI winter” threatening traditional SaaS models, Indian SaaS unicorn LeadSquaredis charting a different course. Rather than seeing artificial intelligence (AI) as a threat, the company views it as a means to build sharper products and deliver more measurable outcomes.
“We are cognizant of the fact that we don’t have to use AI for the sake of AI. It’s not FOMO. It’s ultimately about what value you pass to the customers,” Prashant Singh, Co-founder and COO, LeadSquared, tells YourStory.
As several companies scramble to safeguard their businesses from AI disruption, LeadSquared is busy AI-powering theirs, betting that its purpose-built intelligence will separate winners from the merely surviving in the next wave of enterprise software.
Meta appoints Arun Srinivas as MD and Head for India operations
Meta Platforms has appointed Arun Srinivas as the Managing Director and Head of India Operations, effective July 1, 2025, the tech giant said on Sunday. In his new role, Srinivas will focus on integrating Meta’s business and revenue goals to better serve clients and partners, along with driving long-term growth in India.
According to Meta, Srinivas will also be responsible for strengthening the company's relationships with brands, advertisers, developers, and partners to drive market growth in India.
Microsoft ready to exit OpenAI deal over strategic disputes: Report
Microsoft is reportedly preparing to step back from high-stakes negotiations with OpenAI after an escalating standoff over terms governing their future collaboration. According to Financial Times and Reuters, talks have hit a near-impasse over fundamental issues including equity, revenue-sharing, and access to core technology.
Microsoft first poured a reported $13 billion into OpenAI, securing exclusive access to its advanced AI models and integrating them across Azure, GitHub Copilot, Bing, Edge, and more. The partnership rapidly positioned Microsoft as a formidable force in the AI landscape.
NxtGen rolls out AI stack for Indian enterprises
Cloud and data centre provider NxtGen Cloud Technologies on Thursday rolled out a series of AI solutions for Indian enterprises, which will help them with real-world use cases on top of its sovereign cloud infrastructure.
At a media walkthrough at its flagship Bidadi Data Centre Campus near Bengaluru, the firm showcased several AI applications, along with its GPU-powered data centre, which assists several enterprises in developing real-world and compliant AI solutions.
“NxtGen’s mission is to make AI truly enterprise-grade—sovereign, scalable, and usable. We’re proud to showcase not just the infrastructure but the intelligence that runs on it—built for India, in India,” said A S Rajgopal, CEO and MD, NxtGen Cloud Technologies.
Ola Krutrim acquires AI platform BharatSah’AI’yak
Ola’s AI venture, Krutrim, on Friday said it acquired BharatSah’AI’yak, an AI-driven platform developed by Samagra, known for its work on government-facing solutions in education, agriculture, and governance.
With this acquisition, the AI unicorn plans to integrate BharatSah’AI’yak into its large language models (LLMs), cloud infrastructure, and agentic platform Kruti, its newly launched AI assistant app. The move will also help the firm to democratise AI across public services, enterprise use cases, and citizen engagement platforms, it said in a statement.
Edited by Jyoti Narayan