'No Taxpayer Money Involved': Puch AI Co-Founder Responds To Concerns Over ₹25,000 Crore MoU With UP Govt

New Delhi: Amid ongoing scrutiny over its agreement with the Uttar Pradesh government, Puch AI co-founder Siddharth Bhatia on Tuesday issued a detailed clarification, stating that the Memorandum of Understanding (MoU) signed with the state does not involve any public funds and is designed to attract investment rather than use taxpayer money.

In a post on social media platform X, Bhatia said the partnership is structured as a public-private initiative and will be executed in phases with support from external investors.

“The company has not received any funding, GPUs or other support from the government, and that citizens will instead benefit through free access to AI services in local languages via its platform,” he stated.

The clarification comes at a time when the Uttar Pradesh government has also emphasised that the MoU is non-binding and only a preliminary step.

Chief Minister Yogi Adityanath had earlier said such agreements do not guarantee final project approval and are subject to detailed evaluation.

Responding to reports about the company’s financials, Bhatia said claims that Puch AI has a revenue of Rs 42.9 lakh are incorrect and stem from confusion with another firm.

He clarified that Puch AI’s financial details are not public but described the startup as “well-funded” and not bootstrapped.

On its technology, Bhatia said the company does not have its own foundational AI model and does not see it as necessary at this stage.

“Instead, it has built infrastructure using open-source models tailored for Indian users, focusing on accessibility through platforms like WhatsApp and voice-based interactions,” Bhatia stated.

“The company’s mission is to make AI accessible to millions of Indians who are currently unable to use tools like ChatGPT or Google Gemini due to language and usability barriers,” he said.

Bhatia also addressed criticism that the platform is merely a “wrapper,” saying it does not rely on APIs from companies like OpenAI or Anthropic, and has built its infrastructure independently. However, he acknowledged that definitions of such terms can vary.

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