India, June 12 -- The race in AI video generation is currently being dominated by global giants like OpenAI, Google and Chinese startups flush with compute budgets running into the billions of dollars. While all of them are competing with bigger models and more GPUs, a Bengaluru-based startup has emerged to buck this trend.

Much like how Chinese AI lab DeepSeek turned the tide in the LLM market, the twelve-year-old Peak XV-backed Avataar has attempted a similar disruption in the AI video generation market.

With the launch of Varya, an AI video generation model, Avataar claims that videos can now be generated for as low as Rs.0.50 per second, which is at least 10X lower than the cheapest AI video creation model available right now.

Acco...