“UP Government and Puch AI have signed a ₹25,000 crore MoU to make Uttar Pradesh India’s first AI Pradesh,” announced Siddharth Bhatia, co-founder of Puch AI. This ambitious agreement, signed on March 24, 2026, aims to foster a comprehensive artificial intelligence ecosystem in the state.
However, the Memorandum of Understanding (MoU) is characterized as non-binding, with Chief Minister Yogi Adityanath stating, “An MoU by Invest UP is a preliminary step before detailed due diligence and project evaluation gets done.” This highlights the cautious approach the state is taking towards the partnership.
Puch AI, a Bengaluru-based startup founded in 2025 by Bhatia and Arjit Jain, has rapidly gained traction, with over a million users in India each month. Notably, more than 60% of these users are experiencing AI technology for the first time through Puch AI’s services, which primarily operate via WhatsApp and voice calls.
Despite its growing user base, Puch AI’s annual revenue was reported at ₹42.9 lakh as of March 31, 2025, raising questions about its capacity to fulfill the large-scale commitments outlined in the MoU. The startup’s relatively small team and lack of a proven infrastructure track record have drawn criticism from various quarters.
Adityanath emphasized that any further progress on the MoU would be contingent upon a thorough evaluation of Puch AI’s proposals. “MoUs are non-binding on the State Government. Any further progress… is subject to detailed evaluation of the prospective investor’s proposal,” he reiterated.
The deal’s announcement comes at a time when Uttar Pradesh is keen to position itself as a leader in the burgeoning AI sector. However, the exact nature of the projects that will be pursued under the MoU remains unclear, and details remain unconfirmed.
As Puch AI continues to navigate its early growth phase, the long-term viability of its ability to execute such ambitious commitments is uncertain. The coming months will be crucial in determining whether this partnership can translate into tangible advancements for both the startup and the state.
