India-based AI research organization AI4Bharat is set to raise USD 12 million in seed funding for a new artificial intelligence startup, as reported by media sources. The funding round, led by venture capital firms Peak XV and Lightspeed Venture, highlights the growing interest in generative AI following the success of OpenAI’s ChatGPT in engaging in human-like conversations. Unlike typical seed rounds ranging from USD 1 million to USD 2 million, this funding demonstrates the potential and value of AI innovation.

The founders of AI4Bharat, Vivek Raghavan and Pratyush Kumar, who have expertise in developing AI models for speech recognition and translation, are launching a new venture named Sarvam. Sarvam aims to develop custom-made large language models (LLMs) specifically designed for India-centric use cases. LLMs are advanced computer algorithms capable of understanding and generating text in a manner that resembles human language. They power popular virtual assistants found on smartphones and the internet.

This announcement follows AI4Bharat’s recent unveiling of a mobile assistant designed to make information on government schemes accessible in multiple languages. The investment from Peak XV Partners marks one of their early investments since their rebranding from Sequoia Capital India and SEA, following their separation from the US-based parent fund.

Peak XV Partners has a track record of investing in AI-focused companies, including voice assistant firm AI Rudder, computer vision firm Mad Street Den, and enterprise marketing platform Insider, as indicated on their website.