OpenAI is said to be in talks with partner Tata Consultancy Services Ltd. to build AI infrastructure in India. This is seen as a win-win for the world’s largest AI company and what could become the world’s largest AI-driven services company.
The company, led by Sam Altman, is in talks to lease at least 500MW of AI data center capacity from TCS HyperVault to train and run its AI models locally, the Economic Times reported on Thursday. In response, TCS is keen to use OpenAI’s large-scale language models to build Agentic AI solutions for clients across BFSI, retail, consumer goods, and manufacturing sectors.
The deal between TCS and OpenAI will also be the beginning of Stargate in India.
TCS and OpenAI did not respond to ET’s queries. HT.com has not independently verified this information.
India’s AI infrastructure
Talk about a possible agreement between TCS and OpenAI comes as India emerges as ChatGPT’s largest user base outside the US, even as technology companies of all shapes and sizes flock to the world’s largest internet population for data to train large-scale language models.
- google has revealed plans to invest up to $15 billion over the next five years to set up its first AI hub in Vizag. The AI infrastructure project will include a 1 GW data center operated by captive renewable energy sources and an undersea fiber optic network.
- Microsoft Corporation will invest $3 billion over the next two years to build local cloud (Azure) and AI infrastructure in India. The plan includes training 1 billion people with AI skills by 2030.
- Meta Platforms Co., Ltd. is investing $100 million in Reliance Industries’ upcoming AI data center in Jamnagar, Gujarat.
- Amazon Web Services has committed $12.7 billion by 2030 to expand its cloud and AI infrastructure in India.
- Tata Consultancy Services The company itself raised $1 billion from TPG for an AI venture called HyperVault. We will jointly build a 1GW data center that OpenAI is interested in.
- Reliance Industries Ltd.along with Brookfield announced an investment of $11 billion over five years to build a 1GW AI data center in Vizag.
indian stargate
OpenAI began laying the groundwork for Stargate India in collaboration with the government and Reliance Industries Ltd, but those negotiations failed. Since then, RIL has relied on long-time partners Google and Meta to realize its AI ambitions under Reliance Intelligence.
Indeed, the Tata Group, of which TCS is the flagship company, is not keen on diluting its stake or over-indexing in a single customer like OpenAI in its AI data center business as it wants to expand its services to other customers like Anthropic, ET quoted sources as saying.
