UP govt scraps Rs 25,000-cr MoU with Bengaluru-based AI startup

Lucknow: The Uttar Pradesh government has cancelled a proposed Rs 25,000 crore Memorandum of Understanding (MoU) signed with Bengaluru-based startup Puch AI for developing artificial intelligence infrastructure in the state, citing lack of financial credibility on the part of the firm. In a statement issued on the official handle of InvestUP on Thursday, the government said the decision was taken after a review conducted as per standard operating procedures revealed that the company did not possess the requisite net worth or credible financial linkages to execute a project of such magnitude.

"As per standard protocols laid by the state government, the MoU signed with Puch AI on March 23, 2026, was reviewed. Necessary details were sought from the investor, but they were not provided in a timely manner.