Sarvam AI has signed a five-year memorandum of understanding (MoU) with the Ministry of Defence to develop and deploy AI applications across the Indian Army, Navy and Air Force, as India expands its efforts to build indigenous AI capabilities for defence.
The agreement with Headquarters Integrated Defence Staff (HQ IDS) also covers joint and integrated organisations under the three Services. HQ IDS will facilitate projects under the framework.
Under the MoU, Sarvam will develop AI applications for operational requirements, training and decision support. The company will also provide technical support for the projects.
The work will cover several projects across the three Services, including applications for decision support, target acquisition and data fusion across the sensor-to-shooter loop. Human oversight will be retained for operational decisions, according to the announcement.
“Sarvam exists to build AI in India, for India. The core of that mission is to put the country’s own intelligence into the systems it depends on,” said Pratyush Kumar, Co-Founder of Sarvam.
“To work with the three Services on the nation’s defence is an honour and a privilege. We hold ourselves to the highest standards in this work. We are grateful to HQ IDS for its trust, and our team is committed to delivering for all three Services,” he added.
The projects will be carried out by Chanakya, Sarvam’s division focused on national security and defence. The division will use the company’s AI stack, including its Sarvam 105B foundation model.
The framework also provides for the use of AI agents, geospatial systems and perception technologies across the Services. The arrangement could allow lessons and operational requirements from projects undertaken by one Service to inform work across the others.
The agreement comes as India pushes to develop domestic defence technologies and reduce reliance on foreign systems. The MoU establishes a framework for Sarvam and HQ IDS to take up projects, including an AI fabric connecting different elements of India’s defence capabilities.
Sarvam builds AI models and products across text, speech, vision and document processing. The startup is reportedly in early discussions to raise $250 million to $300 million at a valuation of $3 billion.
- Former GitHub CEO Launches Git Platform Built for AI Agents
- E2E Networks Plans 5.4 MW NVIDIA Blackwell Expansion in India
- Protectt.ai Takes Majority Stake in Bosch-incubated AIShield
- Anthropic Reports $974 Million Profit in Q2 2026 Ahead of IPO
- OpenAI Launches GPT-6.1 Terra With 50% Lower API Prices, Resumes Frontier AI Training
- Microsoft Offers Buyouts to 60,000 Employees

