Bengaluru, May 14, 2026: HCLTech is set to invest $150 million in Sarvam AI, a Bengaluru-based AI startup, as part of a $300 million funding round, according to multiple sources familiar with the matter. The deal also involves Bessemer Venture Partners, Nvidia, Prosperity7, Activate, Glade Brook, and Sarvam’s existing investors.
The funding round values Sarvam at $1.5 billion post-money, representing a sevenfold increase from its 2023 valuation. If completed, the investment will be the largest private funding round for an Indian AI startup this year.
HCLTech’s participation is notable because it marks a rare direct investment by an Indian IT services company into a domestic AI venture. Traditionally, large Indian IT firms have prioritized shareholder returns over high-risk strategic bets on frontier technologies. Analysts say this move indicates a shift in approach, likely driven by growing investor concerns over AI disruption in outsourcing and enterprise software services.
Sarvam AI recently released two large language models: a 30-billion-parameter model and a 105-billion-parameter model, both developed entirely in India. The company claims these models deliver competitive performance for Indian languages at lower costs than some global alternatives.
Legacy IT Firm HCLTech Bets on Homegrown AI
The startup has also benefited from India’s sovereign AI initiatives. Through the IndiaAI Mission, which has committed $1 billion to domestic AI development, Sarvam received approximately $11 million in GPU subsidies, including 4,096 NVIDIA H100 SXM GPUs via Yotta Data Services.
Founded in July 2023 by Vivek Raghavan and Pratyush Kumar, Sarvam AI provides a full-stack generative AI platform, encompassing model research, training, and enterprise deployment. The startup competes in a growing ecosystem of Indian AI firms and initiatives, including Gnani.ai and IIT-Bombay’s BharatGen, that aim to develop homegrown alternatives to global AI systems.
Sources indicate the funding round is expected to close in the coming weeks. Market observers note that the deal could set a precedent for more strategic AI investments by Indian IT companies and provide access to technology that may influence enterprise AI offerings in the coming years
