TCS, OpenAI Eyes Partnership to Establish Stargate India, Drive Agentic AI Innovation

OpenAI and Tata Consultancy Services (TCS) are reportedly in advanced talks to set up AI compute infrastructure in India and build agentic AI systems for large companies, The Economic Times reported.  

The talks are tied to OpenAI’s Stargate plan, which focuses on expanding long-term computing capacity across different markets. 

HyperVault Capacity Under Consideration 

As per The Economic Times, 1 proposal involves OpenAI leasing around 500 MW of data-centre capacity from HyperVault, TCS’s new data-centre arm. The capacity would be used to train and run OpenAI’s language models.  

HyperVault’s centres are intended to support a mix of users, including hyperscalers, large enterprises, government agencies and Tata Group companies. 

Joint Work on Enterprise AI Tools 

The discussions between OpenAI and TCS extend beyond infrastructure. Both companies are examining ways to build agentic AI tools for sectors such as banking, financial services, retail, consumer goods and manufacturing.  

These tools would use OpenAI’s frontier models. The work aligns with TCS’s broader shift toward AI-enabled delivery systems and workforce training programmes. 

India’s Expanding AI Activity 

India’s AI market continues to attract investment. A Nasscom-BCG study estimates the market could reach $17-22 billion by 2027, supported by annual growth of 25-35%.  

Several companies have increased their presence in India, including Google and Reliance Industries, which announced new AI hardware and enterprise offerings. OpenAI has also opened an office in New Delhi and expanded its hiring in the country. 

Read More: Aditya Birla Sun Life AMC Incorporates Wholly Owned Subsidiary in GIFT City! 

TCS Share Price Performance  

As of December 05, 2025, 11:27 am, Tata Consultancy Services (TCS) share price traded at ₹3,258.20, a 0.90% increase from the previous closing price. 

Conclusion 

A final agreement between OpenAI and TCS is expected later in the year. The partnership would add new compute capacity and enterprise-focused AI systems to India’s growing technology infrastructure. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.