Tamil Nadu signs Rs 10,000 crore MoU with Sarvam AI to set up Sovereign AI Park, to create 1,000 jobs

The MoU was exchanged in the presence of Chief Minister M.K. Stalin, Industries Minister T.R.B. Rajaa, senior government officials and Sarvam AI co-founder Pratyush Kumar.

• Tamil Nadu signs MoU with Sarvam AI for India's first Sovereign AI Park in Chennai.
• ₹10,000 crore investment to create 1,000 AI research and tech jobs
• Park to prioritize secure AI, public-sector use, and local language models

Did our AI summary help?

The Government of Tamil Nadu, on January 13 signed a memorandum of understanding (MoU) with Sarvam AI to establish India’s first full-stack Sovereign AI Park in Chennai, marking a move towards building AI infrastructure where data, models and compute remain within a state-controlled trust boundary.

The project will receive an initial investment of Rs 10,000 crore and is expected to create approximately 1,000 high-skilled jobs in areas such as AI research, infrastructure engineering, and governance technology. The MoU was exchanged in the presence of Chief Minister M.K. Stalin, Industries Minister T.R.B. Rajaa, senior government officials and Sarvam AI co-founder Pratyush Kumar.

According to the announcement, the Sovereign AI Park will be developed as a purpose-built district integrating AI compute infrastructure, secure data frameworks, model research laboratories and innovation clusters. It will also house a dedicated Institute for AI in Governance, aimed at developing and deploying AI systems for public-sector use while ensuring compliance with data security and ethical standards.

The park is designed to operate as a “full-stack” ecosystem where data storage, model training and deployment are conducted within the state’s jurisdiction. The government said this structure is intended to support AI use cases in sectors such as education, agriculture, healthcare and citizen services.

Sarvam AI is an Indian generative AI company that works on building full-stack AI platforms and foundational models tailored for Indian languages and use cases. Its portfolio includes open-source language models, multilingual conversational and voice AI systems, and APIs for speech-to-text, translation and reasoning tasks.

The company has been selected under the central government’s IndiaAI Mission to develop India’s first sovereign large language model and has been granted access to high-performance computing resources for this endeavour.

Sarvam AI was founded by Pratyush Kumar and Vivek Raghavan in 2023, with a mission to build foundational generative AI models for India, focusing on local languages and contexts. Both co-founders have backgrounds in AI research and building large-scale digital infrastructure, with significant contributions to projects like AI4Bharat.

As part of its roadmap, the company plans to roll out its sovereign AI models by mid-February, which will be trained and deployed within India’s regulatory and data governance frameworks.

The Sovereign AI Park is expected to act as a central hub for research, startups and public-sector AI deployments, anchoring large-scale model development and infrastructure in Tamil Nadu.