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UP CM Yogi Clarifies: ₹25,000 Crore MoU with PuchAI is “Non Binding”

UP CM Yogi Adityanath with PuchAI co-founder Siddharth Bhatia
March 24, 2026 04:31 PM IST | Written by Vaibhav Jha

A memorandum of understanding (MoU) for AI related investments worth Rs 25,000 crore (approximately $2.67 Billion USD) between Uttar Pradesh (UP) government of India and PuchAI- a Bengaluru based AI voice assistant startup- has snowballed into a major controversy.

UP Chief Minister Yogi Adityanath released a statement on X on Tuesday afternoon, clarifying that the MoU with PuchAI is “non-binding” and any government permission, approval or license is subject to “detailed evaluation of prospective investors proposal.” 

“Any prospective investor falling short of the above will automatically have their MoU terminated. Uttar Pradesh remains committed to transparent, responsible and future focused development,”  said CM Yogi in his tweet.

 

 

His statement comes a day after his X handle had announced an MoU between UP government and PuchAI, worth Rs 25,000 crore to bring “AI parks, large scale data center infrastructure, AI Commons and an AI University to the state.”

AI FrontPage had earlier reported how key details of the MoU and a clear roadmap for the ambitious AI project of UP government were missing from the Monday declaration.

PuchAI is a one-year-old Bengaluru based start-up by two co-founders Siddharth Bhatia and Arjit Jain- that offers AI powered voice assistant services on Whatsapp application on cellphones. Its co-founder Siddharh Bhatia had met CM Yogi in Lucknow, U.P on Monday and had reiterated the claims of a Rs 25,000 crore MoU to establish AI infrastructure in the state.

PuchAI: Little Known Start-Up Gains Spotlight

Launched in June 2025, PuchAI gained quick limelight for its focus on indigenous AI product for India by introducing AI voice assistant tool in different languages for whatsapp. However, the claim to fame moment came in 2025, when it co-founder Siddharth Bhatia had posted a tongue-in-cheek tweet, offering a whooping $50 Billion to acquire both Perplexity AI and Google.

Bhatia, an alumnus of National University of Singapore, had claimed himself as the founder of a “$50 Million” company from India. However, there is no public information available as to which entity operates PuchAI and whether it has filed its incorporation form or commencement details with the MCA.

A search on the Ministry of Corporate Affairs (MCA) master database displays both Bhatia and co-founder Arjit Jain as directors of TurboML Private Limited, another venture they floated with an authorized capital of Rs 7 lakh. Platform Tracxn lists annual revenue of TurboML as Rs 5.2 crore.

 

Many citizens had raised doubts over the caliber of a bootstrapped startup to deliver on the made promises in the Rs 25,000 crore MoU and referred to Puch AI as a “wrapper on an interface”. A community note had been put on CM Yogi’s tweet announcing the MoU with PuchAI.

 


The startup’s official account on X has replied to a few critics, by terming their accusations as “political attempt.

“The valuation figures are outdated, and all other claims, including that we are merely a wrapper on top of Gemma, are false. These are not facts, just uninformed opinions from people like you. Hope you get to experience better AI soon,” read a statement from PuchAI on X.

The ball is now in Puch AI’s court to declare their financials and roadmap to collaborate with the UP government to develop AI infrastructure worth Rs 25,000 crore.

Also Read: India’s AI Agriculture Dream: A Thousand Miles Between Policies and Farmlands

Author

  • Vaibhav Jha

    Vaibhav Jha is an Editor and Co-founder of AI FrontPage. In his decade long career in journalism, Vaibhav has reported for publications including The Indian Express, Hindustan Times, and The New York Times, covering the intersection of technology, policy, and society. Outside work, he’s usually trying to persuade people to watch Anurag Kashyap films.

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