Sam Altman’s OpenAI — the creator of ChatGPT — is in advanced talks with Tata Consultancy Services (TCS) to build large-scale AI infrastructure in India, Economic Times reported.
According to the report, OpenAI is negotiating to lease at least 500 MW of AI data-centre capacity from TCS HyperVault, which would support the training and deployment of its AI models within India.
In return, TCS will gain access to OpenAI’s large-language models (LLMs) to build Agentic AI solutions for global enterprise clients, creating a major technology collaboration between one of the world’s top AI companies and India’s largest IT services firm.
How this strengthens India’s AI ecosystem
India’s AI ecosystem is set to gain significant strength through a combination of shared compute resources, public datasets, and AI-ready infrastructure being developed by major players like TCS.
These initiatives lower costs and entry barriers, allowing startups, researchers, and students to build AI tools without the need for expensive GPU clusters.
At the same time, government-backed Centres of Excellence in agriculture, healthcare, education, and sustainable cities — supported by industry-led infrastructure — are enabling sector-specific AI solutions tailored to India’s unique challenges, from smart farming to diagnostic tools.
As more AI-ready data centres become operational, enterprises across finance, retail, logistics, mobility, and manufacturing can rapidly deploy advanced AI models, improving automation, efficiency, and competitiveness.
This expanding ecosystem also bolsters the domestic AI talent pipeline, giving developers, engineers, and researchers shared access to compute power and modern LLMs, helping them work on real-world AI workloads and reducing reliance on overseas infrastructure.
