OpenAI taps Tata Group in India ‘Stargate’ push; plans up to 1GW of local AI capacity

(L-R) Tata Sons Chairman N Chandrasekaran and Sam Altman, CEO, OpenAI

Tata Group’s IT services arm Tata Consultancy Services (TCS) and OpenAI on February 19 announced a multi-dimensional strategic partnership aimed at driving artificial intelligence (AI) adoption across enterprises, consumer platforms and social impact initiatives in India and overseas.

The collaboration spans AI-led innovation within Tata Group companies, joint go-to-market (GTM) initiatives for global clients, and the creation of large-scale AI infrastructure in India.

The AI infrastructure planned will be a part of OpenAI's Stargate Project. Stargate is a $500 billion multi-year initiative launched by the AI giant in 2025 to build AI data centres globally for training and inference.

Enterprise AI rollout across Tata Group

As part of the partnership, several thousand Tata Group employees will gain access to Enterprise ChatGPT to enhance productivity and innovation. TCS will also deploy OpenAI’s Codex capabilities to strengthen software engineering productivity and outcomes.

The two organisations plan to co-develop industry-specific Agentic AI solutions, combining OpenAI’s AI models with TCS’ domain expertise and sectoral knowledge. The companies will jointly target Indian and global enterprises seeking contextualised AI transformation.

TCS said it will support customers in deploying, integrating and scaling OpenAI’s advanced AI platforms worldwide.

100 MW AI infrastructure, scalable to 1 GW

In a significant infrastructure push, TCS’ data centre subsidiary HyperVault unit has entered into a multi-year agreement with OpenAI to build AI-ready infrastructure in India.

In the first phase, TCS will develop 100 megawatts (MW) of AI infrastructure capacity, with plans to scale up to 1 gigawatt (GW). The infrastructure will support next-generation AI workloads and is expected to strengthen India’s position as a global AI hub.

TCS had established HyperVault in 2025 to build gigawatt-scale, green-energy powered AI infrastructure for hyperscalers and AI-native enterprises. The facilities are designed to include liquid-cooled data centres with high rack density and network connectivity across major cloud regions.

Social impact and skilling push

Beyond enterprise use cases, the OpenAI Foundation and TCS will collaborate on AI skilling initiatives aimed at Indian youth. The partnership includes developing technology toolkits for NGOs and launching programs focused on responsible AI adoption, with a target to positively impact at least one million young Indians.

What did the leadership say?

Sam Altman, CEO, OpenAI, said, “India is already leading the way in AI adoption, and with its talent, ambition, and strong government support, it is well placed to help shape its future. Through OpenAI for India and our partnership with Tata Group, we’re 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.”

“This deep collaboration between OpenAI and Tata Group marks a major milestone in India’s vision to become a global leader in AI,” said N Chandrasekaran, Chairman, Tata Sons.

He added, “We are pleased to partner with OpenAI to create state-of-the-art AI infrastructure in India. 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.”