HMD Global Launches Vibe 2 5G Smartphone Featuring Indus AI Chatbot

HMD Global, the Finnish phone manufacturer, has officially unveiled its latest smartphone, the Vibe 2 5G. This device is notable for being the first to come pre-installed with the Indus chatbot, developed by Indian AI company Sarvam. The partnership between HMD and Sarvam was initially announced during the India AI Summit held in New Delhi in February, marking a significant step in the integration of AI technology into mobile devices.

Key Features of the Indus Chatbot

The Indus app leverages Sarvam’s advanced AI model, which boasts an impressive 105 billion parameters, demonstrating the sophistication and scale of its capabilities. Designed to cater to the diverse linguistic landscape of India, the chatbot supports 22 Indic languages and features mid-sentence code-switching, allowing users to seamlessly switch between languages like Hindi and English during conversations. However, it is important to note that the application currently does not support offline functionality, nor does it offer a shortcut for easy access to the AI assistant on the device.

Strategic Partnership for Market Penetration

The collaboration between HMD and Sarvam serves as a testing ground to assess the demand for a chatbot tailored specifically for the Indian market. “With this partnership, our primary goal is to make the Indus app accessible to consumers,” stated Ravi Kunwar, HMD’s CEO and Vice President for India and APAC. He emphasized that the initial focus is on user accessibility, with plans to enhance user engagement in subsequent phases.

Specifications and Pricing of the Vibe 2 5G

The Vibe 2 5G is positioned as a mid-range Android smartphone, featuring a robust 6,000mAh battery and a competitive price point of ₹10,999 (approximately $114). HMD has indicated that future devices in the Vibe series will also incorporate the Indus chatbot, alongside plans to launch a feature phone integrated with Sarvam’s AI in the near future.

Market Context and Future Implications

While HMD holds a modest 4% share of India’s feature phone market as of 2025, its presence in the smartphone segment is considerably less prominent, with the company not ranking among the top 15 smartphone vendors according to IDC data. The integration of AI capabilities into feature phones could be a game changer for both HMD and Sarvam, potentially expanding their reach within this vast and linguistically diverse market.

Despite the initial download figures for the Indus app being relatively low—just over 293,000 downloads in India within three months of launch, compared to the 43.9 million downloads of ChatGPT—the strategic implications of this partnership may outweigh these early numbers. By bundling a localized AI assistant with affordable devices, HMD aims to tap into an underserved market where conventional English-language AI tools have limited effectiveness.

Sarvam’s Growth and Future Prospects

Sarvam is rapidly emerging as one of India’s leading AI startups, focusing on enterprise partnerships and voice-based solutions. The company is reportedly in the process of securing a significant funding round, with estimates suggesting a $300 million investment at a valuation of $1.5 billion. As interest in AI adoption grows in emerging markets, the partnership between HMD and Sarvam presents a noteworthy case study for investors and industry observers alike.

In summary, the launch of the Vibe 2 5G smartphone, equipped with the Indus AI chatbot, represents a strategic move by HMD Global to enhance its market presence in India while addressing the unique linguistic needs of its consumers.