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Puch AI Clarifies No Public Funds Used in UP Govt Partnership Deal

Puch AI co-founder Siddharth Bhatia has clarified that the startup's Memorandum of Understanding with the Uttar Pradesh government does not involve any taxpayer money. He stated the company has received no funding, GPUs, or support from the government, describing it instead as a well-funded private entity. The partnership is a public-private initiative aimed at attracting investment and providing free AI services in local languages. Bhatia also addressed technical criticisms, confirming the platform is built on open-source infrastructure tailored for Indian users, not as a wrapper for other companies' APIs.

Key Points: Puch AI Co-founder Addresses Funding Concerns with UP Govt

  • MoU is non-binding and preliminary
  • No public funds or GPUs received
  • Startup described as "well-funded"
  • Focus on AI in local languages via WhatsApp
  • Built on open-source models, not APIs
2 min read

'No taxpayer money involved': Puch AI co-founder responds to concerns

Puch AI co-founder clarifies MoU with Uttar Pradesh involves no taxpayer money, details startup's funding and mission for accessible AI in India.

"The company has not received any funding, GPUs or other support from the government - Siddharth Bhatia"

New Delhi, March 24

Amid ongoing scrutiny over its agreement with the Uttar Pradesh government, Puch AI co-founder Siddharth Bhatia on Tuesday issued a detailed clarification, stating that the Memorandum of Understanding signed with the state does not involve any public funds and is designed to attract investment rather than use taxpayer money.

In a post on social media platform X, Bhatia said the partnership is structured as a public-private initiative and will be executed in phases with support from external investors.

"The company has not received any funding, GPUs or other support from the government, and that citizens will instead benefit through free access to AI services in local languages via its platform," he stated.

The clarification comes at a time when the Uttar Pradesh government has also emphasised that the MoU is non-binding and only a preliminary step.

Chief Minister Yogi Adityanath had earlier said such agreements do not guarantee final project approval and are subject to detailed evaluation.

Responding to reports about the company's financials, Bhatia said claims that Puch AI has a revenue of Rs 42.9 lakh are incorrect and stem from confusion with another firm.

He clarified that Puch AI's financial details are not public but described the startup as "well-funded" and not bootstrapped.

On its technology, Bhatia said the company does not have its own foundational AI model and does not see it as necessary at this stage.

"Instead, it has built infrastructure using open-source models tailored for Indian users, focusing on accessibility through platforms like WhatsApp and voice-based interactions," Bhatia stated.

"The company's mission is to make AI accessible to millions of Indians who are currently unable to use tools like ChatGPT or Google Gemini due to language and usability barriers," he said.

Bhatia also addressed criticism that the platform is merely a "wrapper," saying it does not rely on APIs from companies like OpenAI or Anthropic, and has built its infrastructure independently. However, he acknowledged that definitions of such terms can vary.

- IANS

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Reader Comments

R
Rohit P
Need more transparency. An MoU with the government, even if non-binding, brings credibility. They should be more open about their funding and tech stack if they want public trust. "Well-funded" is too vague.
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Aman W
Focus on WhatsApp and voice-based AI for Indian languages is brilliant! So many of my relatives can't use English-first tech. If this delivers, it could be a real game-changer for digital inclusion. 🤞
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Sarah B
Good to see the clarification. The initial reports were confusing. As long as no public funds are involved and it's just a framework to encourage innovation, it seems like a positive step.
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Karthik V
Building on open-source models is practical. We don't need to reinvent the wheel. Tailoring existing tech for Indian needs—languages, low bandwidth, simple interfaces—is the right strategy. Jai Hind!
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Nikhil C
Respectfully, the "wrapper" criticism has some merit. If you're not building a foundational model, what's the long-term moat? Hope they have a solid plan beyond just integration. The intent is good though.

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