Inside OpenAI's India Plans — World's Largest AI In Talks With TCS To Build 500 MW Hub: Report

In an effort to permeate the Indian tech ecosystem, Open AI is in talks with Tata Consultancy Services (TCS), the country's largest software exporter, to build an AI compute infrastructure in India.

OpenAI is also looking to partner with Tata to co-develop agentic AI solutions to enterprises across India, reports The Economic Times.

This is a clear indicator of OpenAI's ambition to leverage the Indian market as part of its global Stargate project. India has the second-largest base of ChatGPT users in the world after the United States.

The report adds that OpenAI is finalising a leasing agreement for at least 500 megawatts of data centre capacity from HyperVault, a new infrastructure unit backed by TCS and private equity firm TPG.

Once the deal is finalised, this would make OpenAI the first anchor tenant for the facility, thereby allowing the company to run its AI models locally in India.

A more promising prospect for OpenAI and TCS could be the initiation of agentic AI models for enterprises, as major Indian companies are looking to automate their processes through the use of AI.

TCS and OpenAI joining hands to provide such agentic AI solutions could prove to be highly lucrative.

The report adds that OpenAI will serve as a key customer for HyperVault, it will not take an equity stake in the entity. Tata officials reportedly prefer to avoid any kind of equity dilution to maintain neutrality and attract other AI clients, such as Anthropic.

In any case, OpenAI's potential deal with TCS comes on the back of failed negotiations with Reliance Industries, which has since adopted close ties with rivals Google and Meta.

OpenAI itself has reportedly signalled code red within the organisation following the launch of Gemini 3.0 by Google, with the ChatGPT-maker keen on not falling behind in the AI race.