OpenAI Partners with Tata Group to Transform AI Infrastructure in India

OpenAI has forged a significant partnership with India’s Tata Group to establish 100 megawatts of AI-ready data center capacity in the country, with aspirations to scale this capacity to an impressive 1 gigawatt. This initiative aligns with OpenAI’s strategy to enhance its enterprise and infrastructure presence in one of its fastest-growing markets.

The Stargate Project: A New Era for AI Infrastructure

Announced recently, this collaboration falls under the “Stargate Project,” which aims to create AI-ready infrastructure and foster global enterprise adoption. OpenAI will be the inaugural client of Tata Consultancy Services’ (TCS) HyperVault data center business, starting with an initial 100 megawatts of capacity. This partnership will also enable the deployment of ChatGPT Enterprise throughout Tata’s workforce, paving the way for standardized AI-driven software development using OpenAI’s advanced toolset.

Expanding Reach in India: A Market with Untapped Potential

This collaboration is part of OpenAI’s “OpenAI for India” initiative, emphasizing the company’s commitment to expanding its footprint in a country with over 100 million weekly ChatGPT users, including students, educators, developers, and entrepreneurs. According to Sam Altman, OpenAI’s CEO, the rapid adoption in India highlights its status as one of OpenAI’s most critical growth markets, thus driving deeper investments in both enterprise and infrastructure.

Enhanced Local Data Center Capacity

The establishment of local data center capacity will enable OpenAI to operate its advanced AI models within India, thereby minimizing latency for users. Additionally, this setup will align with data residency, security, and compliance requirements, especially for regulated sectors and governmental functions. Hosting these computational resources domestically will be crucial for enterprises managing sensitive data, ultimately broadening OpenAI’s access to customers needing in-country processing capabilities.

Commitment to AI Infrastructure Development

The initial commitment of 100 megawatts represents a substantial investment in AI infrastructure, where powering large-scale model training and inference demands clusters of graphics processing units (GPUs) that consume significant energy. The ultimate aim of scaling to 1 gigawatt would position the Tata facility among the largest AI-centric data center developments on a global scale, highlighting OpenAI’s long-term vision in India.

Strategic Collaboration with Tata Group

In addition to the infrastructure developments, OpenAI and Tata Group will engage in a strategic enterprise collaboration designed to accelerate AI adoption across Tata’s diverse portfolio. Tata intends to roll out ChatGPT Enterprise among its workforce over the coming years, starting with hundreds of thousands of employees at TCS, marking this initiative as one of the largest enterprise AI deployments globally. Moreover, TCS plans to leverage OpenAI’s Codex tools for streamlined AI-centric software development across engineering teams.

N Chandrasekaran, Chairman of Tata Sons, acknowledged that the partnership with OpenAI would significantly contribute to developing state-of-the-art AI infrastructure in India while also equipping the local workforce with essential skills for an AI-driven future.

Financial Terms and Investment Plans

Details regarding the financial aspects of the partnership remain undisclosed, including whether OpenAI is making a capital investment in HyperVault or simply leasing capacity. However, in November 2025, TCS received backing from private equity firm TPG to further develop AI-ready infrastructure in India, with approximately ₹180 billion (around $2 billion) in planned investments to support large-scale computational needs for both hyperscalers and enterprise clients.

Certification Programs to Develop AI Skills

OpenAI is also making strides in extending its certification programs in India, with TCS being the first organization outside the United States to participate. These certifications are designed to cultivate practical AI skills across various roles and industries. This initiative follows OpenAI’s previous partnerships with notable Indian institutions in fields such as engineering, medicine, and design.

Expanding Presence in Indian Cities

In conjunction with these initiatives, OpenAI plans to establish new offices in Mumbai and Bengaluru later this year, augmenting its existing footprint in New Delhi. This expansion aims to facilitate enhanced enterprise partnerships, foster developer engagement, and enable local regulatory coordination as the company continues to scale its operations in India.

AI Impact Summit: A Platform for Innovation

The announcement comes at a pivotal moment, coinciding with India’s AI Impact Summit in New Delhi, where global AI leaders, including Sam Altman, Anthropic CEO Dario Amodei, and Google CEO Sundar Pichai, are engaging with Indian startups and enterprises to showcase AI applications across various sectors such as finance, healthcare, and education.

Building Partnerships for a Bright AI Future

OpenAI has been strategically expanding its influence in India through collaborations with various companies like Pine Labs, JioHotstar, Eternal, Cars24, HCLTech, PhonePe, CRED, and MakeMyTrip. These partnerships aim to integrate OpenAI’s models across consumer platforms, enterprise systems, and digital payment infrastructures within one of the world’s largest internet user bases.

Conclusion: A Comprehensive Push for AI in India

The developments surrounding the data center build-out, enterprise deployments, and an expanding partner ecosystem signify OpenAI’s most comprehensive initiative yet to establish advanced AI infrastructure and applications in India. This collaboration not only represents a significant leap in capabilities for both OpenAI and Tata Group but also promises to drive innovation and growth within the burgeoning AI landscape in India.

With these strategic developments, OpenAI is well poised to be a key player in shaping the future of AI technology in one of the world’s most promising markets.

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Emmanuel Kesse

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