AI4Bharat, Backed by Microsoft, Raises $12 Million in Funding for AI Development

Researchers at AI4Bharat, a start-up supported by Microsoft, have successfully secured $12 million in funding from venture capital firms Peak XV and Lightspeed Venture. This substantial seed funding round is significantly larger than the average, highlighting the increasing interest in generative AI following the impressive performance of OpenAI’s ChatGPT in engaging in human-like conversations. Typically, seed rounds range from $1 million to $2 million.

AI4Bharat’s Focus on AI Development

AI4Bharat, which also boasts support from the Indian government, has been dedicated to the development of AI models for speech recognition and translation. In May, they introduced a mobile assistant designed to provide information on government schemes in multiple languages. Despite requests for comment, AI4Bharat, Peak XV, and Lightspeed have yet to respond to Reuters.

Collaboration and Partnerships

AI4Bharat, incubated at the Indian Institute of Technology in Madras and backed by a grant from Infosys co-founder Nandan Nilekani, is actively collaborating with the National Payments Corporation of India to create voice-based payment systems for feature phones. This investment from Peak XV Partners is one of the first following its rebranding from Sequoia Capital India and SEA, which occurred last month. Peak XV’s other AI investments include AI Rudder, an AI voice assistant firm, Mad Street Den, specializing in computer vision, and Insider, an enterprise marketing platform.

Emerging Opportunities in Generative AI

Generative AI has garnered significant attention from both consumers and businesses, leading to increased funding for start-ups in this field, even during uncertain economic times. Indian AI start-ups have already amassed $583 million in funding this year as of June, according to Venture Intelligence data. In total, they raised a staggering $2.45 billion last year, showcasing the immense potential for growth and innovation within this sector.

In summary, AI4Bharat, with the backing of Microsoft and the Indian government, has secured a noteworthy $12 million in funding from Peak XV and Lightspeed Venture for the advancement of AI development. Their focus on speech recognition and translation, as well as collaborations with prominent organizations, demonstrates their commitment to harnessing the power of AI. The surge in funding for generative AI start-ups, despite economic uncertainties, further emphasizes the promising future of this field.