OpenAI eyes India market, in ‘advanced’ talks with TCS to build computing infra, agentic AI solutions, says report

ChatGPT-maker and artificial intelligence (AI) frontrunner OpenAI is in advanced talks with Indian software giant Tata Consultancy Services (TCS) to expand its operations in India, the Economic Times reported on Thursday.

The discussions, led by CEO Sam Altman, reportedly focus on building AI computing infrastructure, co-developing agentic AI solutions for Indian companies, and localizing OpenAI services for the Indian market.

OpenAI did not respond to queries. Mint has reached out to TCS, and this story will be updated with their comments.

OpenAI's India foray: What we know

Global platform companies like OpenAI and ChatGPT typically rely on multiple vendor partners for data centre infrastructure and cloud services. This ensures operational flexibility, distributed data storage and processing, and redundancy in case of downtime.

A senior consultant, working closely with the Centre and familiar Big Tech operations in India, told Mint, requesting anonymity, that TCS is not the only potential partner. OpenAI is also in discussions with Microsoft and other top data centre vendors for its India operations.

OpenAI has already localized part of its India operations. Since May, ChatGPT’s enterprise data processing has been handled within India. Mint first reported on 5 February that OpenAI was working to localize ChatGPT data and models in the country.

India chapter for OpenAI's ambitious Stargate project?

According to the report, a partnership with TCS would “mark the beginning” OpenAI’s ambitious Stargate project in India. India is OpenAI’s second-largest customer base after the US.

The report added that senior leadership from TCS is in the US to finalize details of the deal, and a formal announcement is expected by year-end.

Citing a Nasscom-BCG study, the report noted that India’s AI market is projected to grow 25-35% annually to reach $17-22 billion by 2027. Sam Altman is reportedly keen to expand OpenAI’s presence in the country. The company has priced its products competitively against rivals Anthropic, Gemini, and Perplexity, and has ramped up hiring to boost India sales.