Puch AI Co-Founder Siddharth Bhatia Clears Air on UP Deal, Says No Taxpayer Money Involved; Calls INR 25,000 Crore MoU ‘Investment-Led Vision’

Lucknow, March 25: Amid mounting scrutiny over its proposed partnership with the Uttar Pradesh government, Puch AI co-founder Siddharth Bhatia has issued a detailed clarification, asserting that the Memorandum of Understanding does not involve any public funds and is designed to attract external investment into the state.

In a post on X, Bhatia said, “The MoU signed with the UP Government is structured as a public-private partnership. It does not involve any cost to taxpayers in Uttar Pradesh. On the contrary, it brings investment into the state. The project will be executed in phases, with support from external investment partners. We have not taken any money, GPUs, or any other form of support from the Government. The only part of this MoU that involves citizens is that they will receive free access to AI, in their own language and through familiar interfaces via AI Commons.”

Puch AI Says UP MoU Involves No Taxpayer Money

The clarification comes after Uttar Pradesh Chief Minister Yogi Adityanath underlined that the proposed INR 25,000 crore MoU is non-binding and only a preliminary agreement. He noted that such deals do not guarantee final approval and will undergo detailed evaluation before execution. Operant AI Launches Ecosystem Programme To Secure India’s Rapidly Expanding AI Infrastructure; Aims To Strengthen Security for Large-Scale Systems.

Responding to reports about the company’s financials, Bhatia dismissed claims linking Puch AI to a revenue figure of Rs 42.9 lakh, attributing it to a mix-up. “This is a bug in Google’s AI, which has confused Puch AI with another company called Pucho AI. The INR 42.9 lakh revenue figure belongs to Pucho AI, not Puch AI. Puch AI’s revenue is not public,” he said, adding that the startup is “well-funded” and not bootstrapped.

On the technology front, Bhatia said the company is not currently building its own foundational AI model. “Puch AI is building a domestic consumer AI offering for the masses. We are bringing AI to people through simple, familiar interfaces like WhatsApp and voice calls, making it accessible even for those who cannot type and prefer voice-based interaction,” he said. India’s AI Opportunity Is Amazing: Sam Altman Hails Country as OpenAI’s Fastest Growing Market at India AI Impact Summit 2026.

He added that the company relies on open-source models customised for Indian users and has built its own infrastructure, rather than depending on APIs from companies such as OpenAI or Anthropic. Addressing criticism that the platform is merely a “wrapper,” Bhatia said definitions can vary but maintained that the company has developed its systems independently.

Commenting on the controversy, he said, “It is a very interesting situation where the Government understands the importance and wants to do good, but it becomes difficult when many actors are rooting for failure. Thousands of accounts attempt to shape narratives to fit political agendas, and everything from community notes to journalism can get weaponised because failure attracts more attention.” He concluded his post by saying, “Quite exhausted. Maybe this is the time to sign off.”

The MoU, announced earlier by the Uttar Pradesh government, outlines plans to build a comprehensive AI ecosystem in the state. The proposal includes AI Parks backed by large-scale data centres, an AI Commons platform for governance and citizen services, and a dedicated AI University to develop talent.

A 40-acre site near Lucknow airport has been identified for India’s first AI City, with Noida, Kanpur, Varanasi, and Prayagraj also included in the broader roadmap.

(The above story first appeared on LatestLY on Mar 25, 2026 07:27 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).