“An MoU by Invest UP is a preliminary step before detailed due diligence and project evaluation gets done,” stated Uttar Pradesh Chief Minister Yogi Adityanath, emphasizing the cautious approach the state is taking towards its recent partnership with Puch AI.
On March 24, 2026, the Uttar Pradesh government signed a ₹25,000 crore memorandum of understanding (MoU) with Puch AI, a Bengaluru-based startup founded in 2025 by Siddharth Bhatia and Arjit Jain. The goal is to create a comprehensive AI ecosystem in the state, positioning Uttar Pradesh as a leader in artificial intelligence in India.
Puch AI, which primarily operates through WhatsApp and voice calls, has gained traction with over a million users each month, with more than 60% experiencing AI for the first time. The startup offers free services such as chat assistance and fact-checking, making technology accessible to a broader audience.
Despite the ambitious plans, the MoU is non-binding, as highlighted by Adityanath. “MoUs are non-binding on the State Government. Any further progress… is subject to detailed evaluation of the prospective investor’s proposal,” he added, indicating that the path forward will require careful scrutiny.
While the partnership is promising, it has faced criticism due to Puch AI’s relatively small team and its limited track record in infrastructure projects. The startup’s annual revenue stood at ₹42.9 lakh as of March 31, 2025, raising questions about its capacity to fulfill large-scale commitments.
“UP Government and Puch AI have signed a ₹25,000 crore MoU to make Uttar Pradesh India’s first AI Pradesh,” Bhatia remarked, expressing optimism about the potential impact of this collaboration.
However, details remain unconfirmed regarding the specific projects that will be pursued under this MoU. The long-term viability of Puch AI in executing such ambitious plans remains uncertain, as stakeholders await further developments.
As the situation evolves, the Uttar Pradesh government has made it clear that any advancement in the partnership will depend on a thorough evaluation of Puch AI’s proposals. This cautious approach reflects the state’s commitment to ensuring that its investments in technology yield tangible benefits for its citizens.
