OpenAI Plans Big AI Compute Push in India Through TCS Partnership

OpenAI is close to sealing a major partnership with Tata Consultancy Services, setting the stage for one of India’s biggest pushes into advanced AI compute infrastructure. The deal would help launch OpenAI’s “Stargate India” chapter and support TCS’s strategy to become the world’s leading AI-driven services company.

People familiar with the talks say the two firms plan to co-develop agentic AI solutions for large enterprises across banking, retail, consumer goods and manufacturing.

OpenAI is also exploring a plan to lease at least 500 MW of data center capacity from HyperVault, TCS’s new data center arm, to train and operate its frontier models in India. The company is expected to become the first anchor client at these upcoming facilities, which will also serve hyperscalers, major enterprises, Tata Group companies and government agencies.

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This move comes after OpenAI’s earlier discussions with Reliance slowed, even as Reliance deepened its ties with Meta and Google on AI and compute projects. With data localization gaining momentum, OpenAI has been adding local data-residency options in key Asian markets, including India.

A senior TCS leadership team is currently in the U.S. to finalize commercial terms, with an announcement expected by year-end. The report notes that OpenAI has no plan to take equity in HyperVault. “Tatas are not keen to dilute equity or over-index on a single customer like OpenAI, and they want to broaden their offerings to peers like Anthropic. An equity investment from one could potentially raise questions around conflict,” the report said.

The partnership aligns with TCS’s broader push into next-generation computing as India strengthens its position as a fast-growing AI hub.