Tamil Nadu, Sarvam AI ink MoU to set up India’s first ₹10,000-crore Sovereign AI Park

The Tamil Nadu government has signed an MoU with Sarvam AI to establish India’s first full-stack Sovereign AI Park. The project, involving an initial investment of ₹10,000 crore, will generate 1,000 high-skilled, deep-tech jobs. The MoU was exchanged in the presence of Chief Minister M.K. Stalin.

According to a statement, the Sovereign AI Park will be a first-of-its-kind purpose-built district in India that integrates AI compute infrastructure, secure data frameworks, model research labs, and AI innovation clusters with a dedicated Institute for AI in Governance. It can operate as a full-stack system where data, models, and compute remain within the State’s trust boundary, ensuring a sovereign, ethical, and inclusive ecosystem for deployment of AI systems.

“With this unprecedented initiative, Tamil Nadu will lead the nation in the scaled deployment of AI. The deployment can be across key sectors like education, agriculture, healthcare, and citizen engagement,” said Tamil Nadu’s Industries Minister T.R.B. Rajaa.

“The Sovereign AI Park positions Tamil Nadu as one of the few places in the world where investors can access AI-grade infrastructure, deep talent pools, in a single ecosystem. This is how Tamil Nadu is preparing itself to absorb and scale the next wave of global technology investment,” said Arun Roy, Secretary, Industries, Investment Promotion and Commerce Department.

“Artificial intelligence will define the next generation of jobs just as manufacturing and IT defined the last. By anchoring sovereign AI infrastructure and frontier research in Tamil Nadu, students and researchers from the State will be enabled to become global creators of AI, not just consumers. This initiative aims to turn Tamil Nadu’s talent strength into long-term economic leadership,” said V. Kamakoti, Director, IIT Madras.

“By bringing together compute, researchers, startups, enterprises, and government under one Sovereign AI Park, Sarvam AI, along with the Tamil Nadu Government, is set to create the conditions for intelligence to move from experimentation to real-world impact at national scale,” Pratyush Kumar, co-founder, Sarvam AI.

Drawing inspiration from the historic Sangam academies that safeguarded and enriched Tamil civilisation, the Sovereign AI Park will also serve as a modern Digital Sangam. It will develop foundational Tamil-first AI models that link classical vocabulary with modern use-cases, thereby embedding culture and context into every layer of digital intelligence. These efforts will ensure that the next generation of AI systems in Tamil Nadu are inclusive, accurate, and locally rooted, the statement issued by the Industries Minister’s office mentioned.

Sarvam AI is an Indian generative AI company focused on building full-stack AI platforms and foundational models tailored to India’s scale, languages, and diversity. The company was selected under the Indian government’s IndiaAI Mission to develop the country’s first sovereign large language model, receiving access to extensive compute resources to build models optimised for reasoning, voice, and Indian languages.