Sarvam Signs Five-Year MoU with Defence Ministry to Build AI Solutions for India’s Armed Forces

The Ministry of Defence has entered into a five-year agreement with Bengaluru-based artificial intelligence startup Sarvam to develop AI-powered applications for the Indian Army, Navy and Air Force. The partnership aims to establish a common AI foundation that can support operations across the three services and strengthen India’s capabilities in indigenous defence technology.

The memorandum of understanding (MoU) was signed through Headquarters Integrated Defence Staff (HQ IDS). Its scope also includes joint and integrated defence organisations, extending the collaboration beyond the individual services.

Rather than covering a single product or an already-deployed system, the agreement provides a framework for multiple AI development projects. The government and the company have not disclosed a specific contract value.

AI Applications to Support Military Operations

Under the agreement, Sarvam will work on designing, developing and deploying AI applications for military operations, training and decision support. The company will also provide technical assistance after deployment.

The planned work includes shared foundation models, agentic AI infrastructure, and geospatial and perception systems. These technologies could help defence personnel process information, interpret their surroundings and support operational planning.

Sarvam co-founder Pratyush Kumar described the partnership as an important responsibility for the company, highlighting its commitment to working with all three branches of the armed forces.

Human Oversight to Remain Central

The proposed AI systems are expected to support military personnel rather than replace human authority over operational decisions. According to the announcement, human oversight will remain in place as the technologies are developed and used.

Key areas of focus include decision support, target acquisition and data fusion. Data fusion involves combining information from multiple sources, including different sensors, to create a more comprehensive understanding of a situation.

The agreement also identifies the sensor-to-shooter loop as an area of interest. This refers to the process through which military systems detect and assess a potential target before enabling an appropriate response.

Building AI Capabilities Within India

The partnership comes amid a broader government effort to reduce dependence on foreign technology and expand India's domestic defence technology capabilities.

In June 2026, the Defence Information Technology Consultative Committee discussed priorities that included indigenous advanced-chip manufacturing, a domestically developed operating system and database, and the strategic placement of data centres for defence applications.

India is also investing in homegrown AI models through the IndiaAI Mission, launched in 2024. In March 2026, the Ministry of Electronics and Information Technology said the initiative was supporting 12 organisations and consortia working on sovereign foundation models, including Sarvam. The programme also provides subsidised access to computing resources.

Developing sovereign AI involves more than creating capable algorithms. For defence applications, the location of data storage, the infrastructure running the models, and control over software updates and security are equally important considerations.

Other AI Initiatives in Defence

Sarvam's agreement adds to a growing range of AI-related initiatives across India's defence ecosystem.

At a technology showcase in December 2025, the Indian Army presented AI-assisted satellite imagery analysis and a portable system called 'AI-in-a-Box'. The latter was designed to operate without an internet connection, potentially supporting use in environments with limited or no connectivity.

In February 2026, state-owned Bharat Electronics Limited inaugurated an AI Centre of Excellence in Pune and introduced an AI policy, further expanding the role of artificial intelligence in the defence sector.

Private defence technology companies are also contributing to this effort. In May 2026, defence-tech startup Armory secured three Ministry of Defence contracts worth a combined Rs 100 crore for its AI-enabled counter-drone system.

A Broader Push for Indigenous Defence Technology

The five-year collaboration with Sarvam reflects India's wider ambition to develop AI capabilities suited to its military requirements while maintaining greater control over critical technology and infrastructure.

By exploring shared AI models and systems for the Army, Navy and Air Force, the initiative could help create a more coordinated technological foundation for defence applications. Its eventual impact will depend on how the projects progress, how effectively the systems integrate with existing military infrastructure, and how reliably they perform in operational settings.