E-Paper
TCS, OpenAI form AI tie-up that spans Agentic AI to data centres in India
TCS will build out its OpenAI offerings globally, while constructing an up to 1 GW data centre in India.
India's Tata Group, as well as its biggest company Tata Consultancy Services Ltd., has formed an AI alliance with OpenAI Inc. that spans Agentic AI to data centres in the world's largest internet population outside of China.
OpenAI, which is in the process of raising more than $100 billion, will team up with TCS on efforts to infuse AI throughout its customers’ operations and its own. One pillar of the agreement will be TCS’s development of a 100 megawatt data center that may be expanded to 1 gigawatt. A 1GW data center typically costs $35 billion to $50 billion.
OpenAI Chief Executive Officer Sam Altman, who is in India for an AI summit, is engaged in a massive construction spree to build data centers in the US and beyond, as he seeks a leading position in AI against rivals such as Alphabet Inc. and Anthropic PBC. OpenAI said it would invest as much as $500 billion through a project called Stargate and has expanded that to $1.4 trillion.
In India, OpenAI and TCS will also team up to build what are known as agentic solutions for specific industries. Such AI services are able to operate autonomously in certain circumstances, limiting the need for human intervention.
TCS, a leading player in providing tech services for corporate customers, will build out its OpenAI offerings globally. They will also work together to provide AI training and resources for Indian youth.
At Tata Group, several thousand employees will get access to the enterprise version of ChatGPT.
OpenAI is close to finalizing the first phase of a new funding round that is likely to bring in more than $100 billion, Bloomberg News has reported, a record-breaking financing deal that would give the startup additional capital to build out its artificial intelligence tools.
