There is no indication in this article that AI has definitely given up on joining Star Alliance or that AI is going to join Skyteam. However, if AI joins Skyteam, the Indian Govt hhas indicated that if Star Alliance turns AI down, it won't allow any other Indian carrier to join Star Alliance either. In that case Jet Airways has a choice to remain a spinster to become an old maid, or be in a polygamous marriage with Skyteam. Although having two airlines from India is good in terms of opening up more choices for Skyteam flyers, it's best at this time to have 9W and AI join different alliances.

I am OK with both or either, but not having any Indian member in Skyteam is a disadvantage to Skyteam.