India's AI Ambitions: Tata and OpenAI Announce Infrastructure Plan

India's AI Ambitions: Tata and OpenAI Announce Infrastructure Plan.webp

New Delhi, February 19 Tata Group and OpenAI announced a strategic partnership on Thursday, centered around plans to build 100 megawatts (MW) of AI infrastructure in India, which can be scaled up to 1 gigawatt (GW), along with joint initiatives to accelerate enterprise AI adoption, develop industry-specific solutions, and expand AI skills for Indian youth.

As part of a multi-year agreement, Tata Consultancy Services' HyperVault unit will develop AI-ready, green-energy-powered infrastructure designed to support next-generation AI workloads.

The facility will feature purpose-built, liquid-cooled data centers with high rack densities and connectivity across key cloud regions, positioning India as a global AI hub.

"In the initial phase, TCS will develop AI infrastructure with 100MW capacity, with the option to scale up to 1 GW. This infrastructure will power next-generation AI workloads and position India as a global AI hub," the Indian firm said in a statement.

The collaboration will also enable several thousand Tata Group employees to access Enterprise ChatGPT to boost productivity and innovation, while TCS will leverage OpenAI's Codex to enhance software engineering outcomes.

The companies plan to jointly develop industry-specific AI solutions, combining OpenAI's advanced AI platforms with TCS' contextual knowledge and domain expertise. Under joint go-to-market initiatives, TCS will deploy, integrate, and scale OpenAI's AI solutions for Indian and global enterprises, supporting organization-wide AI transformation.

The tie-up with OpenAI was announced amidst 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.

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

"Through OpenAI for India and our partnership with the Tata Group, we are 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.

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 be combined with TCS' contextual knowledge of industries and deep AI skills.
 
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