India's HCLTech to buy 10.5% stake in AI startup Sarvam AI for $150.7 million

Indian IT services giant HCLTech is making a significant strategic investment in the domestic generative AI startup Sarvam AI. The company announced on Monday it will acquire a 10.5% stake for 14.27 billion rupees ($150.7 million) in cash, leading Sarvam AI's Series B funding round.

This investment values the startup at $1.5 billion. The Series B round aims to raise $300 million, with the first close already securing $234 million. HCLTech's acquisition of 41,421 equity shares is intended to fuel Sarvam AI's research and development. The focus will be on training next-generation AI models for agentic AI, coding, and cybersecurity applications.

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India's HCLTech said on Monday it will acquire a 10.5 per cent stake in domestic generative AI startup Sarvam AI for 14.27 billion rupees ($150.7 million) in cash, leading the firm's Series B round as a strategic investor.

The partnership is expected to yield substantial benefits for HCLTech. The company plans to leverage Sarvam AI's capabilities to develop specific language models and AI solutions tailored for its global client base. Furthermore, it aims to accelerate the creation of sovereign AI solutions, which are crucial for governments and regulated industries seeking to maintain data control and security.

Microsoft has also shown interest in Sarvam AI, partnering with the Indian startup in 2024 to support voice-based generative AI applications. The Series B round was co-led by Bessemer Venture Partners, with existing investors Khosla Ventures and Peak XV Partners also participating.

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The investment will allow the Indian IT services company to develop specific language models and AI solutions for its global client base, and accelerate the development of sovereign AI solutions for governments and regulated industries, HCLTech added.