The Uttar Pradesh government has issued a detailed clarification regarding the Memorandum of Understanding (MoU) signed between Invest UP and startup Puch AI. This comes as concerns were raised over the startup’s capacity to handle a project of significant scale. Chief Minister Yogi Adityanath emphasized that MoUs are preliminary arrangements and do not ensure final project approval or execution.
Observers have questioned Puch AI’s ability to undertake large-scale commitments, given its status as a young startup with an annual revenue of less than Rs 50 lakh. The startup’s founder has previously made unconventional claims, including a proposal to acquire a $20 billion AI firm. The Chief Minister reiterated that MoUs with Invest UP are initial steps for exploring opportunities in sectors like AI.
The government clarified that the MoU with Puch AI is part of efforts to explore innovation-driven investments and does not signify endorsement of any project proposal. It stressed that MoUs are non-binding and further progress depends on rigorous scrutiny of the investor’s proposal and capabilities. Any investor failing to meet standards during evaluation would have their MoU terminated.
Uttar Pradesh reaffirmed its commitment to transparency and responsible development in sectors like AI. The government aims to safeguard public interest through stringent due diligence processes.
