Indian AI entrepreneur Vivek Raghavan, co-founder of Bengaluru-based Sarvam AI, has warned that India risks becoming a “digital colony” if it fails to develop its own artificial intelligence capabilities and continues relying heavily on foreign technology companies.
In an interview with the Financial Times, Raghavan stressed the importance of building domestic AI infrastructure to ensure that India maintains control over its technological future.
(Also read: Bengaluru startup employee says parents were not happy when he quit Microsoft: ‘now they’re smiling’)
“The big question that we have to ask, in an Indian context, is whether there is a risk of the country becoming a digital colony,” he said.
“My hope is that we are at the vanguard of change and there will be a hundred Sarvams in the future. I’m optimistic.”
Concerns over free foreign AI models
Raghavan argued that global technology giants offering advanced AI services for free could make it increasingly difficult for Indian companies to compete.
{{/usCountry}}Raghavan argued that global technology giants offering advanced AI services for free could make it increasingly difficult for Indian companies to compete.
{{/usCountry}}“In any other industry, if someone invested $100bn and gave it away for free in another country, that would be called dumping. This is actually what’s happening in AI,” he said.
He also raised concerns about user data, pointing to India's position as a major market for free versions of ChatGPT and Google's Gemini.
“If you’re a free user, your data is the product,” Raghavan claimed.
He emphasised that India needs strategic autonomy, with the ability to develop and operate AI systems domestically rather than depending entirely on overseas providers.
Sarvam's push for homegrown AI
Founded by Raghavan and Pratyush Kumar, Sarvam AI focuses on developing foundational AI models and voice technologies tailored to India's diverse languages.
Raghavan said the company had developed a 105-billion-parameter AI model using government-supported computing resources. Its voice agents currently handle approximately 2.5 million to 3 million calls daily, helping businesses communicate with customers in regional languages.
(Also read: Google's Project Suncatcher satellite sends first AI response from space, writes a haiku)
The company's end-to-end voice system supports 12 Indian languages, while some of its models support up to 22.
In June, Sarvam announced that it had raised $234 million in the first close of its $300 million Series B funding round, with HCLTech joining as the lead strategic investor.
Ambitions beyond India
Raghavan revealed that Sarvam was developing a trillion-parameter AI model, expected to be ready within six to nine months.
The company also aims to capture a significant share of AI usage in India and eventually expand its affordable technology to markets across Africa, the Middle East and other Asian countries.