Bengaluru-based AI company Sarvam has signed a five-year Memorandum of Understanding (MoU) with Headquarters Integrated Defence Staff (HQ IDS) under the Ministry of Defence to develop artificial intelligence (AI) solutions for the Army, Navy and Air Force. The company announced the agreement in a press release on Tuesday.

The agreement provides a framework for AI projects across the three Services and organisations under HQ IDS. The collaboration will cover AI applications, research, knowledge management, training and decision support.

HQ IDS called the agreement a major step towards strengthening India's independent AI capabilities in defence. “The partnership will focus on building secure, sovereign and scalable AI capabilities, with strong emphasis on data sovereignty and ensuring responsible AI-based solutions,” it said in a post on X.

Under the MoU, Sarvam will develop and deploy AI applications for operational requirements, training and decision-making. It will also provide technical support, while HQ IDS will coordinate projects across the three Services.

The partnership will give all three Services access to common foundation models, agentic infrastructure, and geospatial and perception systems. Insights from projects in one Service can support work in the others. The focus will include decision support, target acquisition and data fusion across the sensor-to-shooter loop.

Sarvam said human oversight would remain in place for operational decisions. The AI systems will be developed in India and deployed on sovereign infrastructure.

The projects will be handled by Chanakya, Sarvam's dedicated division for national security and defence. It will use the company's AI technology, including its Sarvam 105B foundation model. The two sides will also explore critical projects, including an AI fabric connecting different elements of India's defence capabilities.

“Sarvam exists to build AI in India, for India,” said Pratyush Kumar, co-founder of Sarvam, as per the press release. “We hold ourselves to the highest standards in this work. We are grateful to HQ IDS for its trust, and our team is committed to delivering for all three Services.”

The agreement supports the government's push for Atmanirbharta, or self-reliance, in defence technology. Under the India AI Mission, launched in 2024 with an allocation of ₹10,372 crore over five years, the government is funding 12 organisations, including Sarvam, to develop sovereign AI models. Sarvam showcased its models at the India AI Summit in February 2026. The mission aims to build homegrown models focused on Indian languages and reduce dependence on foreign platforms.

In April, Cabinet Secretary TV Somanathan addressed the Army's top brass and stressed the need for sovereign AI models and resilient supply chains to protect national interests amid evolving geopolitical challenges and ongoing global conflicts.