The video criticizes the Uttar Pradesh government for signing a ₹25,000 crore AI MoU with a one-year-old startup, Puch AI, which had a revenue of less than ₹50 lakh/year, and questions the legitimacy and value of such deals, including a previous one for an AI city in Ayodhya.

Around the upload date (March 25, 2026), the Uttar Pradesh government had indeed signed a ₹25,000 crore AI MoU with Puch AI, a startup founded in June 2025, which had reported revenue of less than ₹50 lakh/year. The founder's symbolic bid to acquire Perplexity AI (valued around $20 billion at the time) was also accurate.

Uttar Pradesh's broader plans to become an AI hub with AI parks and universities were also in motion. The Ayodhya AI city initiative with Arahas Technologies was also accurately described as having been signed in 2023.

Puch AI's nature as an AI assistant accessible via chat/voice and its lack of involvement in integrated AI chip manufacturing were also accurate. However, circumstances changed rapidly.

Just days after the video's upload date, on March 27, 2026, the Uttar Pradesh government cancelled the ₹25,000 crore MoU with Puch AI due to concerns over the startup's financial credibility, lack of adequate net worth, and absence of credible financial linkages. Therefore, the claim that the ₹25,000 crore amount is only for superficial activities is misleading, as the MoU was cancelled before any such expenditure could occur, and its stated purpose was for substantial infrastructure.

The claim about the whereabouts of Arahas Technologies being unknown is false, as the company is active and its details are publicly available. The claim regarding 30,000 government schools closing in Uttar Pradesh due to the ₹25,000 crore deal is unverified by reliable sources, and no evidence was found to support this specific number or direct causation. [1][2][3]