Sarvam AI To Raise $250Mn from Nvidia, Accel & HCLTech at $1.5Bn Valuation

Indian AI start-up Sarvam is in advanced discussions to raise between $200 million and $250 million from investors including Nvidia, Accel and HCLTech, MoneyControl reported.

If completed, the round could become the largest private funding deal for an Indian startup this year and the biggest capital infusion into a pure-play Indian AI company to date.

The proposed funding round is reportedly expected to value Sarvam AI at around $1.5 billion, representing a more than sevenfold increase in its valuation within just two years.

Deal Details

As per the report, discussions are still ongoing, and the final size of the round may change as additional investors express interest. While Sarvam AI, Nvidia, and Accel have not publicly commented, HCLTech has stated that it does not respond to market speculation. If the deal materialises, it would also signal a notable shift in India’s IT sector, marking one of the first recent instances of a major domestic IT company participating as a strategic investor in an AI startup.

Investor interest in the Bengaluru-based company has reportedly strengthened following its recent product developments. At the India AI Impact Summit in February, Sarvam AI unveiled two large language models with 30 billion and 105 billion parameters.

These models were trained from scratch in India and positioned as cost-effective alternatives with strong benchmark performance, particularly for Indian language applications. The launch has reinforced confidence in the company’s technical capabilities and its potential to address local AI needs.

Sarvam AI’s Vision

Founded in July 2023 by Vivek Raghavan and Pratyush Kumar, Sarvam AI is focused on building full-stack generative AI systems, spanning foundational model research to enterprise deployment tools.

The company is part of India’s broader push toward sovereign AI, alongside initiatives such as BharatGen and firms like Gnani.ai.

The growing investor interest also aligns with India’s wider efforts to develop domestic AI infrastructure. Under the IndiaAI Mission, the government has been supporting access to high-performance computing resources and foundational model development.

Sarvam AI has emerged as a key beneficiary of this push, securing a significant allocation of Nvidia H100 GPUs through Yotta Data Services. Its rapid rise underscores how both global and domestic investors increasingly view it as a leading contender in India’s ambition to build sovereign AI alternatives to global Big Tech players.