Criticism Surrounds Yogi Adityanath’s AI Investment Announcement
The recent declaration by Uttar Pradesh Chief Minister Yogi Adityanath regarding a substantial ₹25,000 crore memorandum of understanding (MoU) with the artificial intelligence startup Puch AI has incited considerable scrutiny online.
Doubts about the company’s legitimacy have led to clarifications from both parties, alongside a rigorous due diligence protocol established by the state’s investment department.
Invest UP CEO Vijay Kiran Anand describes the startup as a bootstrap venture, stating the ₹25,000 crore figure pertains to private investments Puch AI aims to secure from its investors.
“Puch AI approached us with a proposal on Friday, and a non-binding MoU was signed on the following Monday. We have mandated them to provide due diligence documents within three days.
If they successfully pass this evaluation, we will proceed; otherwise, the MoU will be rescinded,” explained Invest UP CEO Vijay Kiran Anand in an interview.
Characterizing Puch AI as a bootstrapped entity, Anand emphasized that the ₹25,000 crore figure represents the private investment Puch AI intends to attract.
“Our responsibility lies in facilitating land allocation, policy assistance, ecosystem-based support, workforce provisioning, and necessary clearances,” he elaborated.
The government has designated land parcels for both an AI city and an AI park, anticipating the participatory involvement of additional tech firms.
In a separate statement, Bhatia, a representative from Puch AI, countered claims of the startup’s financial status, asserting that the company is “well-funded” and not solely bootstrapped, although he refrained from providing specific financial figures.
On the investment model, he described it as a public-private partnership that incurs no costs to Uttar Pradesh taxpayers, positing that it instead generates investment for the state.
The initiative will be rolled out in phases, reliant on external funding partners. “We have not received any fiscal support, GPUs, or other assistance from the Government,” he affirmed.
Established approximately a year prior, Puch AI specializes in offering a voice-first AI service through WhatsApp. Critics from the technology sphere have dismissed the platform as a mere “wrapper” over existing AI models, notably Google’s Gemma series.
While Bhatia acknowledged that the company lacks its own foundational model, he claimed that it has constructed its infrastructure using open-source models designed for Indian audiences, rather than depending on commercial APIs from industry giants like OpenAI or Anthropic.
Danish Pruthi, an assistant professor of computer science at the Indian Institute of Science in Bengaluru, remarked, “There are no open-source models, no documentation, and no reports—nothing that can be independently verified or audited.”
Furthermore, Pruthi criticized the company for its inexperience in developing data centres or establishing academic institutions, framing its marketing tactics—such as sponsoring Lionel Messi’s tour in India and bidding for Perplexity—as mere “viral marketing stunts.”
Adityanath disseminated the MoU announcement via social media on Monday, framing it as an initiative to enhance AI infrastructure through the development of AI parks, data centres, an AI Commons, and even an AI University.
He later clarified the non-binding nature of such agreements, stating, “An MoU by Invest UP is merely a preliminary stage prior to comprehensive due diligence and project assessment… These MoUs do not obligate the State Government and may be terminated if criteria are not satisfactorily met.”
Furthermore, Bhatia has been engaging with senior Union ministers, including Defence Minister Rajnath Singh and Commerce Minister Piyush Goyal, to elevate the company’s public presence.
In a statement from August 2025, following OpenAI’s entry into the Indian market, he expressed sentiments aimed at Prime Minister Narendra Modi: “Why celebrate OpenAI’s expansion in India? Let’s honor Puch AI making strides in New York,” complemented by the hashtag #AatmaNirbharBharat.
Source link: Hindustantimes.com.
