Sarvam AI Signs 5-Year Defence AI Deal with Ministry of Defence for Army, Navy and Air Force

Sarvam AI Partners with Ministry of Defence for Military AI Applications

Sarvam AI has signed a five-year memorandum of understanding (MoU) with the Ministry of Defence to develop and deploy Defence AI applications across the Indian Army, Navy and Air Force.1

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The agreement with Headquarters Integrated Defence Staff (HQ IDS) establishes an umbrella framework for AI projects across all three Services, along with joint, tri-service and integrated organisations under HQ IDS. This partnership marks a significant step in India's push to build indigenous defence technologies and reduce dependence on foreign systems, aligning with Prime Minister Narendra Modi's vision of Atmanirbharta in defence.

Indigenous AI Infrastructure for National Security

Under the MoU, Sarvam AI will design, develop and deploy AI applications for Indian Army, Navy, and Air Force operational requirements, training needs and decision support systems.1

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The company will also provide ongoing technical support for these projects. The work will be executed by Chanakya, Sarvam's firewalled division dedicated to national security and defence.2

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Chanakya will leverage Sarvam's AI stack, including the Sarvam 105B foundation model, to deliver solutions built on sovereign AI infrastructure.

Decision Support and Target Acquisition Capabilities

The framework covers several critical projects across the three Services, focusing on decision support, target acquisition and data fusion across the sensor-to-shooter loop.1

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Human oversight will be retained for operational decisions, ensuring responsible deployment of AI systems. The agreement provides access to foundation models, agentic infrastructure, and geospatial systems across all Services.2

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This unified approach allows doctrine and operational lessons from one Service's projects to inform work across the others, creating a cohesive AI layer for India's armed forces.

Building AI Fabric for Defence Capabilities

The framework also incorporates AI agents, geospatial systems and perception technologies across the Services.1

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Sarvam and HQ IDS will undertake projects of critical national importance, including building an AI fabric that connects different elements of India's defence capabilities.2

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"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 AI. "To work with the three Services on the nation's defence is an honour and a privilege."

Sarvam's Expansion and Funding Trajectory

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.1

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This five-year MoU positions Sarvam AI as a key player in India's defence modernization efforts, as artificial intelligence becomes as consequential to military capability as the platforms it runs on. The agreement underscores the government's commitment to developing AI for defence on Indian data and Indian compute, building capabilities that align with national security imperatives while maintaining technological sovereignty.