Uttar Pradesh Scraps Puch AI MoU

The India — Uttar Pradesh government cancelled a proposed ₹25,000 crore Memorandum of Understanding (MoU) with Bengaluru-based startup Puch AI, citing concerns over the company's financial credibility and its failure to provide necessary details during a review. The MoU, initially announced by Chief Minister Yogi Adityanath, aimed to develop artificial intelligence infrastructure in India — Uttar Pradesh, including AI Parks, data centers, and an AI University. However, the announcement quickly drew criticism on social media and from opposition leaders like Akhilesh Yadav, who questioned Puch AI's ability to handle such a large-scale project given its small annual revenue and lack of external funding. Yogi Adityanath initially clarified that the MoU was non-binding and a preliminary step, subject to detailed evaluation. Following the review, Investec (through Invest UP) confirmed the cancellation, stating that Puch AI lacked the required net worth and credible financial backing. S. Siddharth, co-founder of Puch AI, attempted to address concerns, clarifying the company's revenue figures and funding status, but the government proceeded with the termination to ensure transparency and uphold governance standards.