Previously, Adityanath revealed that Uttar Pradesh had signed a ₹25,000 crore MoU with Puch AI aimed at developing a comprehensive AI ecosystem. The initiative includes plans for AI Parks supported by extensive data centre infrastructure, an AI Commons platform for citizen and governance applications, and a dedicated AI University designed to nurture tech talent.
A 40-acre area near Lucknow airport has been earmarked for what is being termed India’s first AI City, with Noida, Kanpur, Varanasi, and Prayagraj also integrated into the larger framework.
An MoU by Invest UP represents a preliminary move prior to in-depth due diligence and project assessment.
The agreement with Puch AI signifies the start of the process by Invest UP to investigate opportunities in the AI sector.MoUs are non-binding for the State Government. Any… https://t.co/f0sEL4hU9x
— Yogi Adityanath (@myogiadityanath) March 24, 2026
What is Puch AI?
Puch AI is a startup based in Bengaluru, founded in 2025 by Siddharth Bhatia and Arjit Jain, with the goal of making AI accessible to everyday Indians. The platform operates mainly through WhatsApp and voice calls, offering a range of free services including chat assistance, image and video generation, and fact-checking, with a strong focus on regional languages.
Currently, over a million Indians utilize Puch each month, with more than 60% experiencing AI for the first time, often in their native languages through voice notes.
However, the deal has sparked significant criticism within the Indian startup and investor community. As of March 31, 2025, Puch AI’s annual revenue was ₹42.9 lakh, making the ₹25,000 crore MoU nearly 6,000 times greater than its annual income.
The company has not raised any external funding to date, and detractors highlighted its small team and absence of an infrastructure track record as critical concerns for such a substantial commitment.
Doubt was further fueled by Bhatia’s pattern of eye-catching announcements. In August 2025, he claimed he would make a $50 billion unsolicited bid to acquire Perplexity AI and Google Chrome, despite Puch AI being valued at just $50 million at that time.
Anyone interested in joining the deal was encouraged to email perplexity@puch.ai, with the first person to persuade Perplexity’s CEO promised an iPhone. The post gained significant traction but was largely perceived as a publicity stunt rather than a genuine business venture.
The internet responded to the announcement with a blend of humor and disbelief.
Also read: UP set to become AI powerhouse with parks and AI university, signs ₹25,000 crore deal
Yogi addresses the backlash
In the wake of criticism, Adityanath clarified the nature of the agreement.
“An MoU by Invest UP is a preliminary step before detailed due diligence and project evaluation gets done. The MoU with Puch AI is similarly an initiation of the process by Invest UP to explore potential in the AI sector. MoUs are non-binding on the State Government. Any further advancement, including any Government permission, approval or license, is subject to the thorough evaluation of the prospective investor’s proposal. Any prospective investor failing to meet these criteria will have their MoU automatically terminated. Uttar Pradesh remains committed to transparent, responsible, and future-oriented development,” he stated.
