“UP Government and Puch AI have signed a ₹25,000 crore MoU to make Uttar Pradesh India’s first AI Pradesh,” announced Siddharth Bhatia, co-founder of the Bengaluru-based startup Puch AI. This ambitious agreement, signed on March 24, 2026, aims to foster a comprehensive artificial intelligence ecosystem in the state.
However, the deal is not without its complexities. Chief Minister Yogi Adityanath emphasized, “An MoU by Invest UP is a preliminary step before detailed due diligence and project evaluation gets done.” This statement highlights the non-binding nature of the memorandum of understanding, indicating that further progress will depend on a thorough evaluation of Puch AI’s proposal.
Puch AI, founded in 2025 by Bhatia and Arjit Jain, has quickly gained traction, with over a million Indians using its services each month. Notably, more than 60% of these users are experiencing AI for the first time, primarily through WhatsApp and voice calls, where Puch AI offers free chat assistance and fact-checking services.
Despite its rapid growth, the startup’s annual revenue stood at ₹42.9 lakh as of March 31, 2025, raising concerns about its capacity to handle large-scale commitments. Critics have pointed out Puch AI’s small team and lack of a proven infrastructure track record, questioning the viability of such a significant investment.
Details remain unconfirmed regarding the specific projects that will be pursued under the MoU. The Uttar Pradesh government has made it clear that any future developments will be contingent on a detailed assessment of Puch AI’s capabilities and proposals.
As the state positions itself as a leader in AI innovation, the collaboration with Puch AI could mark a pivotal moment for both the startup and Uttar Pradesh. However, the road ahead remains uncertain, with stakeholders eagerly awaiting further clarity on the partnership’s potential outcomes.
