TCS, Tata Group partner with OpenAI to build AI infra and roll out joint solutions in market

The tie-up also has a social impact focus, wherein the partners will collaborate to train Indian youth and offer them tools to improve the livelihoods of 10 lakh people.

Mumbai: The Tata Group and its IT services arm TCS on Thursday announced a multi-dimensional tie-up with OpenAI focused on building artificial intelligence infrastructure and offering joint solutions in the market.

The tie-up will also help thousands of Tata Group employees access OpenAI's enterprise ChatGPT offering to boost productivity. It also has a social impact focus, wherein the partners will collaborate to train Indian youth and offer them tools to improve the livelihoods of 10 lakh people.

Tata Consultancy Services' recently announced datacenters business, Hypervault, and OpenAI will develop 100MW of AI capacity in the initial phase as part of a multi-year partnership aimed at positioning India as a global AI hub, an official statement said, adding that the capacity can be increased to 1GW as well.

It can be noted that TCS had earlier secured an investment of USD 1 billion from TPG for the datacenters business, and stated that the private equity major will hold between 27.5-49 per cent stake in the business.

The tie-up with OpenAI has been announced amid the ongoing India AI Impact Summit in New Delhi and a day after Infosys announced a tie-up with Anthropic to deliver enterprise AI solutions.

"Through OpenAI for India and our partnership with the Tata Group, we're working together to build the infrastructure, skills, and local partnerships needed to build AI with India, for India, and in India, so that more people across the country can access and benefit from it," OpenAI's chief executive Sam Altman said.

He added that India is already leading the way in AI adoption, and is well placed to shape its future with its talent, ambition, and strong government support.

Tata Sons' chairman N Chandrasekaran called it a deep collaboration between the entities which marks a major milestone for India's vision to become a global AI leader.

"This is a unique opportunity for OpenAI and TCS to transform industries. Together we will skill India's youth and empower them to succeed in the AI era," he said.

The partnership also includes building industry-specific Agentic AI solutions where OpenAI's agentic AI solutions will come together with TCS' contextual knowledge of industries and deep AI skills.

TCS and OpenAI will enable Indian and global enterprises to transform with AI-powered solutions tailored to their organisational contexts as part of a joint go-to-market initiative.

The largest Indian IT services player, which is aiming to be world's largest AI-led IT Services company, will help customers accelerate AI-led transformation by deploying, integrating, and scaling OpenAI's advanced AI platforms worldwide, the statement said.

The TCS scrip was trading 1.02 per cent up at Rs 2,722 a piece on the BSE at 0926 hrs as against 0.05 per cent of gains on the benchmark.