Sarvam, backed by Axonwise Pvt. Ltd., is in advanced discussions with the Indian Ministry of Defence to establish a ₹300 crore (approximately $36 million USD) Centre of Excellence (CoE) dedicated to developing indigenous artificial intelligence capabilities for defence applications. This initiative reflects a strategic shift in India's defence policy aimed at reducing dependence on foreign AI technologies and enhancing technological sovereignty in sensitive military domains. AI's significance in modern warfare is underscored by its active role in conflicts, with nations like the US and China achieving self-sufficiency across various AI technologies. The CoE will focus on creating AI systems that are specifically trained on India's unique operational environments, enabling advanced surveillance and decision-support systems for the armed forces. Experts highlight the need for India to integrate AI into military networks effectively, as this integration is crucial for modern warfare, particularly in command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems. With strong government support and significant investment potential, Sarvam is positioned to play a pivotal role in advancing India's military AI capabilities.