With a focus on sovereign AI, foundational models, and practical applications, Indian companies deploying AI in their products and solutions attracted more than $1 billion in venture capital funding, a 50 percent increase over the previous year
India, having rapidly adopted AI technologies developed in the US and China, is now building its own foundational models, prioritising responsible AI, infrastructure, data ethics and skilling. Illustration: Chaitanya Dinesh Surpur
On May 26, Sarvam AI launched its large language model, or LLM, which can power chatbots and virtual assistants, translate from English into Indian languages, and has the potential to find immense use in education for its ability to answer mathematics and science questions, including—as demonstrated—JEE-level questions in Hindi.
The model, Sarvam-M, drew praise for its felicity with Indian languages and linguistic nuances, and for its understanding of the cultural context and local datasets—considered critical in a diverse country. However, Sarvam, supported by the IndiaAI Mission in its efforts to build India’s foundational model, also attracted scepticism from competitors who questioned its reliance on Mistral, a French open-source model.
Such debates, instead of taking away from India as a hotbed of AI (artificial intelligence)-related activity, support the country’s rise from an adopter to a leader. And many of the questions get answered by the money flowing in.
In 2024, Indian companies deploying AI in their products and solutions attracted more than $1 billion in venture capital funding, a 50 percent increase over the previous year.
“While we are witnessing growing interest and capital deployment from private equity and venture capital firms, the scale of opportunity suggests that we are still in the early innings. The journey is underway, suggesting that more catalytic funding, particularly in foundational AI and hardware innovation, is essential,” says Akhilesh Tuteja, Partner and Head, Technology, Media and Telecom, KPMG in India.
(This story appears in the 13 June, 2025 issue of Forbes India. To visit our Archives, click here.)