Sarvam AI signs MoU with TN Govt to set up sovereign AI park with ₹10,000 cr investment

AI startup Sarvam AI has signed a memorandum of understanding (MoU) with the Government of Tamil Nadu to set up a full-stack Sovereign AI Park in Chennai. The project will be supported with an initial investment of ₹10,000 crore over five years.

The Sovereign Al Park will be a purpose-built district in India comprising Al compute infrastructure, secure data frameworks, model research labs, and Al innovation clusters, and an Institute for Al in governance. A full-stack system, the data, models, and compute will remain within the State’s boundary, ensuring a sovereign and inclusive ecosystem for deployment of Al systems. It also includes setting up data centres to exclusively host government's data.

It is expected to create over 1,000 high-skilled deep-tech jobs and position Tamil Nadu as a national hub for sovereign, ethical, and locally governed AI systems.
“This demonstrates our strategic commitment to not only adopt but also shape the future of artificial intelligence from a people-first, state-led perspective,” said TRB Rajaa, Minister for Industries, Government of Tamil Nadu. “With this unprecedented initiative, Tamil Nadu will lead the nation in the scaled deployment of AI across key sectors like education, agriculture, healthcare and citizen engagement.”

One of the key focuses of the park will be the development of Tamil foundational AI models. The initiative aims to link classical Tamil vocabulary with contemporary digital use-cases, integrating cultural and linguistic context into the next generation of AI systems.

“Tamil Nadu is the first state to invest in building a full-stack sovereign AI ecosystem, laying the foundations required to train, deploy, and embed intelligence across institutions and industries. Sarvam will build and train the models that power this ecosystem,” Sarvam AI’s LinkedIn post said. “A Sovereign AI approach sets the right foundations from day one, enabling states and institutions to design, train, deploy, and govern AI systems that are safe, aligned, and rooted in their context.”