Cognizant In Talks To Invest In Sarvam At $3.5 Bn To $4 Bn Valuation: Report

Bengaluru-based AI startup Sarvam AI is reportedly engaging in discussions with IT services giant Cognizant Technology Solutions regarding a possible investment, which could value the company at $3.5 billion to $4 billion. Sarvam, which seeks roughly $300 million in fresh capital, is valued at $1.5 billion in its latest funding round.

If an investment is finalized, it would more than double Sarvam's previous valuation. The talks come after Sarvam raised $234 million in its first close of a $300 million Series B round in June 2023, with HCLTech leading the investment. Cognizant's potential stake would make it the second IT services major among Sarvam's investors, following HCLTech.

The Indian AI startup focuses on foundational AI models, computing infrastructure, and enterprise applications tailored to local languages, data security, and specific use cases. Sarvam's recent model releases include Sarvam Vision 2.1 for vision-language processing in Indian languages, Saaras V4 for speech-to-text, and Bulbul V4 Flash, a text-to-speech model.

Sarvam has also secured significant clients, such as Life Insurance Corporation of India, SBI Life, IDFC First Bank, Tata Capital, and CRED. The company recently teamed up with Headquarters Integrated Defence Staff to establish AI frameworks for Indian military branches.