Sarvam AI, the most well-funded generative AI startup in India, is strategically adopting a "Big Tech" playbook to establish itself as a dominant force in the nation's burgeoning AI landscape. Founded in 2023 by Dr. Vivek Raghavan and Dr. Pratyush Kumar, the Bengaluru-based company is taking a comprehensive approach, focusing on building a full-stack GenAI platform, tailoring solutions for the diverse Indian market, and fostering a sovereign AI ecosystem.

Sarvam AI's strategy mirrors that of established tech giants in several key aspects. First and foremost, the company is heavily investing in research and development to create its own foundational AI models. Unlike many AI startups that rely on pre-trained Western models, Sarvam AI is developing LLMs from the ground up, optimized for Indian languages and use cases. This approach allows for greater control over the technology and ensures that the models are well-suited to the specific needs of the Indian market. The company unveiled its flagship LLM model, Sarvam-1, in 2023, followed by the advanced Sarvam 2B, a 2-billion parameter LLM focused on 10 Indian languages and trained on a massive proprietary dataset. In early 2025, they launched Sarvam M, a 24-billion-parameter model built on top of Mistral AI's model.

Furthermore, Sarvam AI is building a full-stack GenAI platform, encompassing everything from AI models to enterprise-grade platforms for application development and deployment. This comprehensive approach allows the company to offer a complete suite of AI solutions to businesses and developers, making it easier for them to integrate AI into their operations. This full-stack platform includes products like Sarvam Agents, Sarvam 2B, Shuka 1.0, Sarvam Models, and A1. Sarvam Agents, for example, offers multilingual, voice-enabled agents accessible via WhatsApp, calls, or in-app.

Recognizing the unique characteristics of the Indian market, Sarvam AI is heavily focused on tailoring its solutions to the local context. With over 1.4 billion people and more than 20 officially recognized languages, India presents a significant challenge for AI developers. Sarvam AI is addressing this challenge by creating AI that understands and interacts in multiple Indian languages, ensuring accessibility and inclusion. The company's focus on voice-first applications is particularly important in a country where digital literacy rates are still relatively low. Voice-based AI has the potential to revolutionize customer service, government-citizen interactions, and various other sectors. For example, Sarvam has developed Shuka v1, which focuses on audio understanding, enhancing AI’s capabilities in processing spoken Hindi.

Sarvam AI is also acutely aware of the strategic importance of AI for India's future. The company aims to establish a truly sovereign AI ecosystem for India, one that is built in India, trained on India's vast linguistic and cultural diversity, and deployed on India's terms. This vision aligns with the Indian government's IndiaAI Mission, which seeks to boost the country's AI ecosystem by investing in compute capacity, research talent, and other key areas. Sarvam AI is likely to be the first recipient of funding from the IndiaAI Mission, potentially receiving ₹220 crore in the form of access to Nvidia H100 chips. The company is also investing in infrastructure, ensuring that models are trained using locally available compute resources and designing systems that can be deployed within Indian institutions without relying on external cloud services.

Sarvam AI's approach has garnered significant attention and investment. In December 2023, the company raised $41 million in a Series A funding round led by Lightspeed Venture Partners, with participation from Peak XV Partners and Khosla Ventures. This investment solidified Sarvam AI's position as one of India's most promising AI startups.

While Sarvam AI's vision is ambitious, the company faces several challenges. One of the biggest is competition from global AI giants like OpenAI and Google DeepMind, which have significantly more resources and expertise. Sarvam AI also needs to overcome the "Koo and Hike parallel," avoiding the fate of earlier India-first tech efforts that failed to sustain interest. Furthermore, the company needs to navigate the complexities of the Indian market, including data scarcity and limited access to powerful GPUs.

Despite these challenges, Sarvam AI is well-positioned to succeed. The company has a clear vision, a strong team, and the backing of prominent investors. By focusing on the unique needs of the Indian market and building a sovereign AI ecosystem, Sarvam AI has the potential to transform India's technology landscape and empower a billion Indians with the power of AI.