HMD Bundles Indian AI Chatbot onto New Smartphone

HMD Takes a Step into Indian AI Market with Vibe 2 5G

Finnish phone-maker HMD has taken a bold step into the Indian AI market by launching its Vibe 2 5G smartphone, preloaded with the Indus AI chatbot. The partnership between HMD and Indian AI company Sarvam marks a significant move to tap into the local market, leveraging the chatbot's language support and affordable hardware.

HMD's CEO, Ravi Kunwar, stated that the primary goal is to make the Indus app accessible to consumers, with plans to drive more traction and stickiness in the coming phases. The Vibe 2 5G features a 6,000mAh battery and a price tag of ₹10,999, positioning it as a mid-range Android phone.

Key Features of Indus AI Chatbot

Powered by Sarvam's 105-billion-parameter model
Supports 22 Indic languages and mid-sentence code-switching
Currently, the application doesn't support offline usage
No integrated feature with the device to invoke the AI assistant through a shortcut

Potential Impact on the Market

The partnership between HMD and Sarvam is a testing ground for both companies to gauge the appetite for an India-focused chatbot. By bundling the regional AI assistant with affordable hardware, HMD aims to tap into the large and linguistically diverse Indian market, where English-language AI tools have limited reach. The strategy may prove more significant for both companies, especially with the expected launch of a feature phone with Sarvam AI integration.

Sarvam's AI Ambitions

Sarvam has been one of India's marquee AI startups, focusing on enterprise partnerships and voice-based solutions. The company is on track to become one of the most funded AI startups in the country, with a reported funding round of $300 million at a $1.5 billion valuation in the works.

Conclusion

The partnership between HMD and Sarvam marks a significant step into the Indian AI market, leveraging the chatbot's language support and affordable hardware. While the early numbers may seem modest, the strategy behind the HMD deal may ultimately prove more significant for both companies.