India’s artificial intelligence sector is attracting large private investments, especially in businesses focused on foundational models and scientific research. Sarvam AI is reportedly discussing a fresh fundraise of $250-300 million at a valuation of around $3 billion.

At the same time, Empirical Machines, a new startup founded by former OpenAI researcher Shyamal Hitesh Anadkat, is reportedly seeking about $15 million from Peak XV Partners and Bessemer Venture Partners.

Both stories point to a growing interest in AI companies that aim to build deeper technology rather than only consumer-facing applications.

Sarvam AI aims to build India-focused AI

Sarvam AI was founded in August 2023 by Dr. Vivek Raghavan and Dr. Pratyush Kumar.

The Bengaluru-based company is building a full-stack AI platform designed for India’s languages, businesses, public services and everyday use cases.

The startup has worked on language, speech, translation, document and voice technologies. Its goal is to make AI more useful for people who may not regularly use English-based digital tools.

Sarvam’s earlier major funding round included a $234 million first close of a planned $300 million Series B at a $1.5 billion post-money valuation. The company said the round would help it develop sovereign AI infrastructure and deploy its models across businesses, governments and developers.

The reported $250-300 million fundraise would therefore be a major follow-on round, rather than an early-stage investment. If completed at a $3 billion valuation, it could double Sarvam’s value within a short period. However, the discussions are still ongoing and the final amount, investors and valuation may change as per ET.

The capital could help Sarvam invest in computing power, research talent, larger models, multilingual voice systems and enterprise distribution. These are likely uses based on the company’s business, but the final deployment plan has not been officially announced.

Empirical Machines wants to speed up scientific research

Empirical Machines is being built by Shyamal Hitesh Anadkat, an Indian-origin researcher who previously worked at OpenAI. The startup is reportedly in talks to raise around $15 million from Peak XV Partners and Bessemer Venture Partners at a valuation of approximately $80 million as per Moneycontrol.

The company’s stated mission is to accelerate scientific discovery using AI that learns from real-world experiments. Its work may include areas such as chemical compounds, materials research and other scientific problems where computers and laboratories need to work together.

In simple terms, the startup wants AI to do more than summarize research papers. It aims to help scientists form ideas, run experiments, study results and improve the next round of testing.

The proposed funding could support research teams, computing infrastructure, scientific partnerships and product development. Since Empirical Machines is still an early-stage company, its technology, commercial model and final funding terms are still developing.

Why these two funding stories matter

Sarvam AI is focused on India-specific foundational AI and multilingual technology. Empirical Machines is targeting AI-assisted scientific discovery. Their approaches are different, but both require expensive research, specialized talent and long development timelines.

The deals also show how investors are becoming more willing to back AI companies before their products reach mass adoption. The challenge will be turning strong research and large funding rounds into dependable products that customers, scientists and public institutions are willing to use.

Conclusion with key takeaways

Sarvam AI is reportedly seeking $250-300 million at a possible $3 billion valuation to expand its sovereign AI ambitions. Empirical Machines is reportedly raising around $15 million to build AI tools for scientific research.

Neither fundraise should be treated as completed until the companies or investors officially confirm the details. Still, both developments underline India’s growing role in AI research, enterprise technology and deeptech innovation.

Disclaimer

The reported fundraises are under discussion and are not confirmed as completed transactions. Valuations, investors and funding amounts may change. This article is for information only and is not investment advice.