Indian AI startup Sarvam AI has achieved a $1.5 billion valuation after raising $234 million in the first close of its Series B round, led by HCLTech, with a total target of $300 million. The company focuses on building large language models, speech tools, and AI agents for Indian languages and local use cases, aligning with the sovereign AI narrative. Sovereign AI emphasizes national control over AI models, data, and computing infrastructure, gaining urgency after Anthropic's Fable 5 and Mythos 5 controversy in the US, where models were restricted for foreign nationals due to US export controls. Sarvam's funding signals growing investor and policymaker recognition of AI infrastructure as a strategic asset, though India still depends on global chips and cloud providers. The round represents India's highest reported Series B valuation in startup history.

Key facts

• Sarvam AI raised $234M at $1.5B valuation, India's highest Series B.
• HCLTech led the round, targeting $300M total.
• Focus on Indian-language LLMs, speech tools, and voice-first AI.
• Sovereign AI gains traction after Anthropic's US export control controversy.
• Funding signals AI infrastructure as strategic asset, not just software.
• India still relies on global chips and cloud providers.