“An MoU by Invest UP is a preliminary step before detailed due diligence and project evaluation gets done,” stated Yogi Adityanath, Chief Minister of Uttar Pradesh, as the state signed a ₹25,000 crore memorandum of understanding (MoU) with Puch AI.
The agreement aims to create a comprehensive AI ecosystem in Uttar Pradesh, positioning the state as a leader in artificial intelligence development in India. Puch AI, a Bengaluru-based startup founded in 2025 by Siddharth Bhatia and Arjit Jain, has rapidly gained traction, with over a million users each month, many of whom are experiencing AI for the first time.
Despite the ambitious goals set forth in the MoU, Adityanath emphasized that the agreement is non-binding. “MoUs are non-binding on the State Government. Any further progress… is subject to detailed evaluation of the prospective investor’s proposal,” he added, highlighting the cautious approach the government is taking.
Puch AI operates primarily through WhatsApp and voice calls, offering free services such as chat assistance and fact-checking. As of March 31, 2025, the startup reported an annual revenue of ₹42.9 lakh, raising questions about its capacity to handle large-scale commitments.
The deal has drawn criticism due to Puch AI’s relatively small team and its lack of a proven infrastructure track record. Observers are concerned about the startup’s ability to fulfill the ambitious promises outlined in the agreement.
“UP Government and Puch AI have signed a ₹25,000 crore MoU to make Uttar Pradesh India’s first AI Pradesh,” Bhatia remarked, underscoring the potential impact of this initiative on the region’s technological landscape.
However, the exact nature of the projects that will be pursued under the MoU remains unclear. Details remain unconfirmed, leaving stakeholders eager for more information on how this partnership will unfold.
As the Uttar Pradesh government prepares to evaluate the investor’s proposal, the future of this collaboration hangs in the balance, with many awaiting the next steps in this ambitious venture.
