Gujarat Signs AI MoUs, Plans Sovereign AI Park to Boost Startups

Gandhinagar | Gujarat — In a decisive push to position Gujarat as a global hub for artificial intelligence and emerging technologies, the state government on Wednesday unveiled a series of initiatives aimed at empowering startups and accelerating digital transformation.

The high-level Startup Dialogue, held in Gandhinagar under the leadership of Chief Minister Bhupendra Patel, brought together innovators, policymakers and technology leaders to chart the state’s AI-driven future. The event marked a significant step towards integrating cutting-edge technology into governance and economic growth.

A major highlight of the dialogue was the signing of Memorandums of Understanding (MoUs) between the state’s Science and Technology Department and startups including Sarvam AI and MIKO. Alongside this, the government also launched the payment modalities for the AI Centre of Excellence, further strengthening institutional support for innovation.

Central to Gujarat’s vision is the establishment of a “Sovereign AI Park” by Sarvam AI. The proposed facility will serve as a one-stop ecosystem, housing advanced computing infrastructure, research and innovation centres, skill development hubs, and AI-driven governance solutions.

“This initiative will not only create employment opportunities but also build a strong ecosystem for next-generation technologies,” an official statement said, adding that the project is expected to generate significant jobs over the next five years.

Chief Minister Patel emphasised the government’s commitment to fostering innovation and improving governance through technology. “Our goal is to increase efficiency, ensure transparency and deliver the benefits of government schemes to the last mile using AI,” he said. He also stressed that “quality will remain the top priority” in technology-driven development.

To support startups at every stage, the government introduced a structured financial model under the AI Innovation Challenge. Startups will receive funding from the Proof of Concept (PoC) stage to full-scale deployment. Financial assistance of up to Rs 7.5 lakh for moderate projects and Rs 10 lakh for complex projects will be provided during the PoC phase, with additional funding of up to Rs 1 crore for large-scale implementation.

The model also ensures phased funding, with 25% released upfront and the remaining after successful completion of initial milestones. Selected startups will receive continued support for up to four years, including access to the Gujarat State Data Center and AI Centre of Excellence infrastructure.

Industry observers believe this initiative will significantly boost Gujarat’s startup ecosystem, particularly in sectors like AI, drones, healthcare, agriculture, cybersecurity and sustainability.

“This dialogue creates a platform where startups can align with the state’s priorities and directly contribute to governance solutions,” a senio officer noted.