Tata Group partners with OpenAI; CEO Sam Altman says, 'Build AI with India, for India, and in India'

The Tata Group and OpenAI have announced a wide-ranging strategic partnership that combines enterprise AI adoption, large-scale infrastructure creation and youth skilling, positioning India at the centre of their long-term AI plans.

The collaboration brings together Tata Consultancy Services and OpenAI across enterprise, consumer and social sectors. It includes the deployment of Enterprise ChatGPT across Tata Group companies, joint development of industry-specific Agentic AI solutions, and the creation of large-scale AI infrastructure in India through TCS’ data centre arm, HyperVault.

Enterprise AI deployment across Tata Group

As part of the agreement, several thousand Tata Group employees will gain access to Enterprise ChatGPT to accelerate innovation and productivity across functions. TCS will also use OpenAI’s Codex tools to improve software engineering productivity and outcomes.

The companies said they will jointly develop industry-specific Agentic AI solutions. OpenAI will contribute its advanced AI platforms, while TCS will bring contextual industry knowledge and domain expertise.

The partnership will also include joint go-to-market initiatives in India and overseas, enabling enterprises to deploy, integrate and scale OpenAI’s platforms in line with their organisational requirements.

Building AI infrastructure in India

A key pillar of the partnership is infrastructure. TCS’ AI data centre subsidiary, HyperVault, has entered into a multi-year agreement with OpenAI to develop AI infrastructure with an initial capacity of 100 MW, with an option to scale up to 1 GW over time.

The companies said the infrastructure will power next-generation AI workloads and strengthen India’s position as a global AI hub. HyperVault was set up in 2025 as TCS’ dedicated vehicle for its AI and sovereign data centre strategy. It is designed to deliver gigawatt-scale, secure, AI-ready infrastructure for hyperscalers and AI-driven organisations.

The facilities will be powered by green energy and will feature purpose-built, liquid-cooled data centres with high rack densities and network connectivity across major cloud regions. The offering is aimed at hyperscalers, AI companies, large enterprises and government clients seeking localised compute capacity.

In November last year, TCS brought in global investment firm TPG as a major investor in HyperVault. TCS and TPG Terabyte Bidco plan to invest up to Rs 18,000 crore, around $2 billion, through a mix of equity and debt over the next few years to build AI-focused data centres across India.

TCS will retain a 51% stake in HyperVault, while TPG is expected to hold between 27.5% and 49%, depending on investment tranches. TPG is investing through TPG Rise Climate, its Global South Initiative and its Asia real estate platform. Together, they are targeting up to 1.2 GW of data centre capacity over five to seven years.

Skilling and social impact

Beyond enterprise and infrastructure, the partnership includes a social impact component. OpenAI Foundation and TCS will collaborate to provide AI training and resources to Indian youth. They plan to develop technology toolkits for NGOs and launch initiatives focused on young people, with the objective of improving the livelihoods of at least one million youth by enabling responsible and efficient use of AI at scale.

Sam Altman, CEO of 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.”

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