OpenAI, TCS in talks to establish Stargate's India chapter, develop agentic AI solutions: Report

The AI firm, valued at $1 trillion, is also in talks for a deal to lease at least 500 MW of data centre capacity from TCS to train and run its AI models, the report said.

OpenAI and Tata Consultancy Services are in advanced discussions to build AI compute infra in India and co-develop agentic AI solutions for businesses, a report the Economic Times said on December 4. An agreement between the two firms could pave the way for OpenAI’s Stargate chapter in India, the report said. In addition, the deal will also quicken TCS’ push to become the “largest AI-led services company” in the world, the paper said.

Earlier in September, the paper had reported that the world’s largest artificial intelligence company had started working on its India leg of Stargate. The Sam Altman-led firm had engaged the government and also held talks with Reliance Industries. However, with no agreement in sight, Reliance Strengthened its partnership with its existing allies Meta and Google to establish Reliance 1 GW compute hub in Gujarat’s Jamnagar, ET reported.

According to OpenAI, Stargate Project is a new company that plans to invest over $500 billion in the next few years to build AI infrastructure in the US.

The AI firm, valued at $1 trillion, is also in talks for a deal to lease at least 500 MW of data centre capacity from TCS to train and run its AI models, ET said.

Moreover, the two firms want to build agentic AI solutions for large businesses, including in sectors such as BFSI, retail, consumer goods, manufacturing backed by frontier GPT large language models.