Indian AI startup Sarvam has signed a five-year memorandum of understanding (MoU) with the Ministry of Defence to develop and deploy artificial intelligence applications for the armed forces, supporting India’s efforts to strengthen indigenous AI capabilities for national security.
The agreement with Headquarters Integrated Defence Staff (HQ IDS) establishes a framework for AI projects across the Indian Army, Navy and Air Force, as well as joint defence organisations. Sarvam announced the agreement in a statement on October 27, 2026. The company has not disclosed the financial value of the MoU or details of individual projects.
Under the agreement, Sarvam will design, develop and deploy AI applications for military operations, training and decision support, while providing technical support for the projects. The work will cover multiple initiatives across the three services, with HQ IDS coordinating the collaboration.
The proposed applications will focus on decision support, target acquisition and data fusion across the sensor-to-shooter loop. According to the company, the framework envisages deploying AI systems on sovereign infrastructure while retaining human oversight over operational decisions.
The collaboration will also provide the three services and joint organisations access to a common technology stack comprising foundation models, agentic AI infrastructure, and geospatial and perception systems. This approach is intended to support knowledge sharing and enable the armed forces to build on capabilities developed through individual projects.
The work will be undertaken by Chanakya, Sarvam’s dedicated, firewalled division focused on security and defence. It will use the company’s AI technology stack, including its Sarvam 105B foundation model.
Sarvam co-founder Pratyush Kumar said the company’s mission was to build AI in India for Indian needs, adding that working with the three armed services was an honour.
Sarvam and HQ IDS will also explore projects to develop an AI fabric connecting different elements of India’s defence capabilities.
The partnership aligns with India’s push for self-reliance in defence technology and could support the development of domestic AI solutions for military applications, reducing dependence on foreign technology and strengthening the country’s indigenous defence technology ecosystem.
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