Microsoft-backed AI4Bharat set to raise $12 million funding from Peak XV, Lightspeed - sources

FILE PHOTO: AI (Artificial Intelligence) letters and robot miniature in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - AI4Bharat, a start-up backed by Microsoft, is raising $12 million from venture capital firms Peak XV and Lightspeed Venture to develop artificial intelligence-powered chatbots for Indian languages, according to three people familiar with the matter.

The larger-than-usual seed funding round underscores the growing interest in generative AI, after OpenAI's ChatGPT dazzled users with its ability to engage in human-like conversations. Most seed rounds are usually up to $1 million to $2 million.