Cognizant in talks to invest in Sarvam AI at $3.5-4 billion valuation: Report

Sarvam has been investing in its AI technology stack and infrastructure as it looks to attract more enterprise clients.

Cognizant Technology Solutions is in discussions to invest in Indian artificial intelligence startup Sarvam AI as part of its latest funding round, which could value the company at $3.5-4 billion, more than twice its valuation in the previous round, ET reported.The potential investment comes as Sarvam steps up efforts to develop AI models and build computing infrastructure to expand its enterprise business and compete with global AI companies such as OpenAI, Google and Anthropic.Sarvam has been investing in its AI technology stack and infrastructure as it looks to attract more enterprise clients.

The company is seeking to establish a stronger position in India's AI ecosystem by developing solutions tailored to local businesses, government agencies and public-sector requirements.Its focus includes multilingual AI capabilities and applications designed for India's specific needs, as organisations increasingly look for technology that can address data security, affordability and local-language requirements.Cognizant, a Nasdaq-listed IT services company with a market capitalisation of around $31 billion, has been exploring investments and acquisitions to strengthen its capabilities in artificial intelligence and related technologies.The company has outlined an ambition to become a platform-led, outcomes-focused business as AI reshapes the IT services industry.

An investment in Sarvam could align with this strategy by deepening its exposure to India's emerging AI ecosystem.