Finnish smartphone manufacturer HMD Global has unveiled its latest device, the Vibe 2 5G, which is equipped with the Indus chatbot developed by Indian AI firm Sarvam. This collaboration was first announced at the India AI summit in New Delhi earlier this year.
The Indus app utilizes Sarvam's advanced AI model, which boasts an impressive 105 billion parameters, reflecting its complexity and capability. It supports 22 Indic languages and allows for mid-sentence code-switching, enabling seamless transitions between languages during conversations. Currently, the app requires an internet connection and lacks a shortcut feature for easy access on the device.
This partnership serves as a significant opportunity for both HMD and Sarvam to explore the demand for a localized AI chatbot in India. "Our primary goal is to introduce the Indus app to consumers," stated Ravi Kunwar, CEO of HMD for India and APAC. "Once users engage with it, we will focus on enhancing its appeal and user retention. By pre-loading the app, we aim to improve accessibility for our customers," he added.
The Vibe 2 5G is positioned as a mid-range Android smartphone, featuring a robust 6,000mAh battery, and is priced at ₹10,999 (approximately $114). HMD plans to extend the integration of the Indus chatbot to other devices in the Vibe series and is also set to release a feature phone with Sarvam's AI capabilities in the near future.
This upcoming feature phone could be pivotal for both companies, as HMD held only a 4% share of India's feature phone market in 2025, while its smartphone presence remains limited, not ranking among the top 15 brands according to IDC.
Despite the initial download figures for the Indus app being modest, with around 293,000 downloads in three months, the strategic bundling of a localized AI assistant with affordable devices could significantly enhance market penetration. This approach is particularly relevant in India, where English-language AI tools may not resonate with the broader population.
Sarvam has emerged as a leading AI startup in India, focusing on enterprise collaborations, particularly in voice technology. The company is on track to secure substantial funding, with reports indicating a potential $300 million investment, valuing it at $1.5 billion.
As the demand for accessible AI solutions continues to grow, this partnership between HMD and Sarvam could shape the future of AI adoption in emerging markets, paving the way for innovative technology that caters to diverse linguistic needs.