Indian artificial intelligence startup Sarvam AI has raised $234 million in the first phase of its larger $300 million Series B funding round. The investment has pushed the company’s valuation to $1.5 billion, making it one of India’s newest AI unicorns.

The company gained significant attention earlier this year after launching two large language models that it said were developed entirely in India. These AI models have been trained in 22 Indian languages and can operate through voice commands. Sarvam AI believes these features will help it compete with major AI firms from the United States and China while catering better to India’s diverse linguistic needs.

The latest funding round attracted investments from Indian technology company HCLTech and venture capital firm Bessemer Venture Partners. Existing investors, including Peak XV Partners and Khosla Ventures, also participated in the round.

Speaking about the company’s future plans, co-founder Pratyush Kumar said, “We are going to push hard across every layer of the company, but the thing that excites me most right now is our shot at building frontier-class AI systems from India.”

He further added, “Country of India scale cannot rent intelligence. We have to build it ourselves.”

Sarvam AI plans to use the fresh capital to strengthen its technology and accelerate the development of advanced AI systems. The company aims to create globally competitive AI models while focusing on India’s unique language and accessibility requirements.

The funding comes at a time when sovereign AI is becoming a major priority for countries around the world. Governments and businesses are increasingly looking to reduce their dependence on AI platforms developed in the US and China. They also want AI systems that align with local regulations, particularly those related to data privacy and security.

With strong investor backing and a focus on multilingual AI, Sarvam AI is positioning itself as a key player in India’s efforts to build homegrown artificial intelligence technology.