Cognizant in talks to invest in Sarvam at $3.5-4 billion valuation - more than double its previous round
Nasdaq-listed IT services company Cognizant is in talks to participate in Sarvam's latest financing round, which is expected to value the Indian AI startup at $3.5-4 billion - more than double the valuation of its previous round - The Economic Times reported, citing people aware of the matter. Sarvam is seeking to raise around $300 million in fresh funds, as ET reported on October 13, and Cognizant may end up acquiring a small stake. The potential investment comes as advances in agentic AI raise questions about the future of the IT services industry, with AI agents increasingly capable of automating work across software development, application maintenance and back-office operations. The talks were reported a day after Sarvam signed a five-year MoU with India's Ministry of Defence to build AI capabilities across the Army, Navy and Air Force. Sarvam, founded by Vivek Raghavan and Pratyush Kumar, builds sovereign AI models for Indian languages and use cases.
DTT summary based on The Economic Times's report. The full article is on the publisher's site.
Cognizant in talks to participate in Sarvam's latest round at a $3.5-4 billion valuation - more than double the previous round; may take a small stake. Talks, not a closed deal
Sarvam is seeking around $300 million in fresh funds, per ET's October 13 report
Agentic AI is raising questions about the future of traditional IT services and outsourcing - Cognizant's interest reflects that shift
Reported a day after Sarvam signed a five-year Ministry of Defence MoU to build AI for the Army, Navy and Air Force
