Tamil Nadu has moved closer to building a state-led artificial intelligence ecosystem by signing a memorandum of understanding with Sarvam AI to set up India’s first full stack Sovereign AI Park in Chennai. The project will see an initial investment of ₹10,000 crore and aims to establish a fully state-controlled AI infrastructure.
The MoU was exchanged on January 13 in the presence of Chief Minister MK Stalin, Industries Minister Dr. TRB Rajaa, senior government officials, and Sarvam AI co-founder Pratyush Kumar. The agreement marks the beginning of a sovereign AI initiative where data, models, and computing infrastructure will operate within a trusted and controlled boundary.
The proposed AI Park will function as a dedicated district that brings together large-scale AI computing facilities, secure data frameworks, model research laboratories, and innovation clusters. It will also house an Institute for AI in Governance, which will focus on developing public sector use cases.
Officials said the project is designed to support AI applications across education, agriculture, healthcare, and citizen services, while ensuring that sensitive data is not exposed outside the state-controlled framework. The park is expected to generate around 1,000 high-skilled jobs, covering areas such as AI research, infrastructure engineering, and governance-focused technology roles.
Sarvam AI, which was earlier selected under the IndiaAI Mission to build India’s first sovereign large language model, will train and deploy its AI models entirely within India. Sarvam AI will use high-performance computing resources located within the country, in line with national regulatory and data governance requirements.
According to reports, the foundational sovereign AI model developed by Sarvam AI is scheduled for release next month at the India AI Impact Summit 2026. The model will operate fully under India’s regulatory framework, reinforcing the country’s push toward trusted and self-reliant artificial intelligence systems.
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