HCLTech is reportedly preparing to lead a major funding round in Bengaluru-based AI startup Sarvam AI, signaling a significant shift in India’s IT sector as traditional technology services firms deepen their exposure to artificial intelligence. The round could see HCLTech invest nearly $150 million, valuing Sarvam AI at around $1.5 billion, with NVIDIA among the potential co-investors. An additional $150 million is expected to be raised from other participants, making this one of the largest fundraising rounds for an Indian AI startup.
Sarvam AI last raised $41 million in December 2023 during its Series A. Founded in July 2023 by Vivek Raghavan and Pratyush Kumar, the company is positioning itself as a sovereign AI firm focused on India-specific applications. Its work includes Indic-language AI models, voice-based applications, and enterprise deployment platforms tailored for Indian businesses. At the IndiaAI Impact Summit earlier this year, Sarvam unveiled open-weight large language models with 30-billion and 105-billion parameters trained entirely in India, underscoring its ambition to build foundational AI systems for the country.
The investment discussions come at a time when global IT services are being reshaped by AI-native firms such as OpenAI and Anthropic. Indian IT companies including TCS, Infosys, and Wipro have faced questions about AI-led disruption, but are now moving more aggressively into partnerships and investments. HCLTech already collaborates with OpenAI to help enterprises deploy AI solutions, and its potential investment in Sarvam AI reflects a broader industry trend of established IT firms seeking direct stakes in emerging AI ecosystems.
Sarvam AI has claimed strong performance for its models, including Vision and Bulbul, in selected tasks against platforms like ChatGPT and Google Gemini. Its focus on India’s linguistic diversity and enterprise needs positions it uniquely within the global AI landscape. The fresh capital would accelerate its growth and reinforce India’s role in developing sovereign AI capabilities.
HCLTech’s share price has also reflected investor interest, trading at ₹1,134.90 on May 15, 2026, up nearly 1% from the previous close. The reported investment highlights the growing strategic importance of AI in India’s technology sector, as established IT firms increasingly look to participate in the country’s emerging AI ecosystem.
