OpenAI Reportedly In Talks With Tata For Major India AI Push
- ByStartupStory | December 4, 2025
Stargate Project Eyes TCS Partnership For 500 MW Compute And Agentic AI Solutions
ChatGPT-maker OpenAI is in advanced discussions with Tata Consultancy Services (TCS) to build AI compute infrastructure in India and co-develop agentic AI solutions for enterprises, marking the launch of its “Stargate India” initiative. The proposed collaboration involves OpenAI leasing at least 500 MW of data centre capacity from TCS’s HyperVault unit to train and run models locally, positioning TCS as a key infrastructure partner in OpenAI’s global expansion.
Compute Infrastructure And Enterprise AI Focus
OpenAI would become HyperVault’s anchor tenant, with facilities serving hyperscalers, enterprises, sovereign clouds, Tata companies, and government agencies. The partnership extends to agentic AI—autonomous systems handling complex tasks—for sectors like banking, retail, consumer goods, and manufacturing, powered by frontier GPT models.
TCS aims to become the “world’s largest AI-led services company” through end-to-end solutions, ecosystem partnerships, workforce upskilling, and AI agent delivery models. A senior TCS delegation is in the US finalizing terms, with announcement expected by year-end.
Post-Reliance Pivot Accelerates India Strategy
Talks follow stalled negotiations with Reliance Industries, now partnering with Google and Meta for Jamnagar’s IGW compute hub and Gemini Enterprise. OpenAI’s India push includes its New Delhi office, local sales leadership, aggressive pricing, and data residency compliance across Asia.
India’s AI market—projected at $17-22 billion by 2027 (25-35% CAGR)—features 1.8 billion ChatGPT users globally, second only to the US. TCS-OpenAI would counter Reliance-Google while supporting data localisation mandates.
Strategic Implications And Execution Hurdles
No equity infusion planned; TCS prioritizes neutrality for clients like Anthropic. Stargate decentralizes OpenAI compute amid global AI race, with India gaining hyperscale infrastructure.
Challenges: regulatory approvals, sustainable energy, and competitive positioning. Success could reshape India’s AI map, blending OpenAI models with TCS enterprise scale for sovereign AI leadership.
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