HMD Integrates Sarvam AI Chatbot into New Vibe 2 5G Phone

Finnish manufacturer HMD has officially entered the Indian AI-integrated smartphone market with the launch of the Vibe 2 5G. The new device comes with the Indus chatbot, developed by the local AI startup Sarvam, pre-installed to offer users a more localized digital assistant experience.

Bridging the Language Gap

The Indus application is built upon Sarvam’s proprietary 105-billion-parameter model, which debuted earlier this year at the India AI summit in New Delhi. A key differentiator for the tool is its capability to handle 22 Indic languages, alongside fluid code-switching between languages like Hindi and English. This feature aims to provide better contextual understanding for users in a highly diverse linguistic landscape.

While the partnership seeks to establish a foothold for both firms, current functionality remains a work in progress. The application does not yet support offline operations, nor does the Vibe 2 5G hardware include a dedicated physical shortcut to trigger the assistant.

Market Strategy and Distribution

For HMD, the collaboration represents a calculated effort to increase its footprint in India. According to data from IDC, HMD held a 4% share of the country’s feature phone market in 2025, though its presence in the smartphone sector remains minimal. By bundling the software with affordable hardware, the company hopes to drive adoption.

Ravi Kunwar, HMD’s CEO and vice president for India and APAC, stated that the current focus is on getting the software into the hands of consumers. “Once they start using it, we will move to phase two to focus on driving more traction and stickiness,” Kunwar explained. The Vibe 2 5G, which features a 6,000 mAh battery, is priced at ₹10,999 ($114).

Future Outlook for Sarvam AI

• Hardware Expansion: HMD plans to extend the chatbot integration to other devices in the Vibe series and is preparing to launch a feature phone equipped with Sarvam AI in the coming months.
• Adoption Metrics: Data from Appfigures shows the Indus app has reached over 293,000 downloads in India since its launch three months ago, highlighting the growth gap compared to global competitors like ChatGPT.
• Financial Growth: Sarvam continues to attract significant investor interest. Recent reports and industry news indicate the startup is closing a $300 million funding round, pushing its valuation toward $1.5 billion.

The success of this partnership may hinge on the integration with feature phones, which could provide a unique channel for AI distribution in regions where English-centric tools have struggled to gain traction.