'Quite exhausted': Puch_AI co-founder Siddharth Bhatia issues clarification on controversial MoU with UP govt

Amid ongoing scrutiny over its agreement with the Uttar Pradesh government, Puch AI co-founder Siddharth Bhatia on Tuesday issued a detailed clarification, stating that the Memorandum of Understanding (MoU) does not involve any public funds and is aimed at attracting investment into the state rather than using taxpayer money.

In a post on social media platform X, Bhatia said the partnership is structured as a public-private initiative and will be executed in phases with support from external investors.

“The MoU signed with the UP Government is structured as a public-private partnership. It does not involve any cost to taxpayers in Uttar Pradesh. On the contrary, it brings investment into the state. The project will be executed in phases, with support from external investment partners. We have not taken any money, GPUs, or any other form of support from the Government. The only part of this MoU that involves citizens is that they will receive free access to AI, in their own language and through familiar interfaces via AI Commons,” he wrote.


The clarification comes as the Uttar Pradesh government has also emphasised that the MoU is non-binding and only a preliminary step. Chief Minister Yogi Adityanath had earlier said such agreements do not guarantee final project approval and remain subject to detailed evaluation.

Addressing reports about the company’s financials, Bhatia said claims that Puch AI has a revenue of Rs 42.9 lakh are incorrect and stem from confusion with another firm.

“This is a bug in Google’s AI, which has confused Puch AI with another company called Pucho AI. The Rs 42.9 lakh revenue figure belongs to Pucho AI, not Puch AI. Puch AI’s revenue is not public,” he said, adding that the startup is “well-funded” and not bootstrapped.

On the technology front, Bhatia said the company does not currently have its own foundational AI model and does not consider it necessary at this stage.

“Puch AI is building a domestic consumer AI offering for the masses. We are bringing AI to people through simple, familiar interfaces like WhatsApp and voice calls, making it accessible even for those who cannot type and prefer voice-based interaction,” he said.

He added that the company has built its infrastructure using open-source models tailored for Indian users, focusing on accessibility through platforms like WhatsApp and voice interactions.

Bhatia also responded to criticism that the platform is merely a “wrapper,” stating that it does not rely on APIs from companies such as OpenAI or Anthropic and has developed its infrastructure independently, while acknowledging that definitions of such terms can vary.

On the controversy, he said, “It is a very interesting situation where the Government understands the importance and wants to do good, but it becomes difficult when many actors are rooting for failure. Thousands of accounts attempt to shape narratives to fit political agendas, and everything from community notes to journalism can get weaponised because failure attracts more attention.” He ended the post saying, "Quite exhausted. Maybe this is the time to sign off."