“UP Government and Puch AI have signed a ₹25,000 crore MoU to make Uttar Pradesh India’s first AI Pradesh,” said Siddharth Bhatia, co-founder of Puch AI. This significant agreement, signed on March 24, 2026, aims to establish a comprehensive AI ecosystem within the state.
However, Chief Minister Yogi Adityanath clarified that the Memorandum of Understanding (MoU) is non-binding, stating, “An MoU by Invest UP is a preliminary step before detailed due diligence and project evaluation gets done.” This highlights the need for further assessment before any substantial commitments are made.
Puch AI, a Bengaluru-based startup founded in 2025 by Bhatia and Arjit Jain, has rapidly gained traction, with over a million Indians using its services monthly. Notably, more than 60% of these users are experiencing AI technology for the first time.
The startup operates primarily through WhatsApp and voice calls, offering free services such as chat assistance and fact-checking. As of March 31, 2025, Puch AI reported an annual revenue of ₹42.9 lakh, a modest figure considering the scale of the new agreement.
Despite the ambitious goals outlined in the MoU, the deal has faced criticism due to Puch AI’s small team and limited infrastructure experience. Observers question the startup’s capacity to fulfill large-scale commitments effectively.
The Uttar Pradesh government has emphasized that any further progress on the MoU will depend on a detailed evaluation of Puch AI’s proposal. This cautious approach indicates the government’s intent to thoroughly vet the startup’s capabilities before moving forward.
Details remain unconfirmed regarding the specific projects that will be pursued under this agreement, leaving stakeholders eager for clarity on the future of AI development in Uttar Pradesh.
As the state aims to position itself as a leader in artificial intelligence, the outcome of this partnership will be closely monitored by industry experts and government officials alike.
With the potential to reshape the technological landscape in India, the collaboration between Puch AI and the Uttar Pradesh government could serve as a model for future initiatives in the AI sector.
As developments unfold, the focus will remain on how Puch AI navigates the challenges ahead and whether it can deliver on the ambitious promises made in this landmark agreement.
