OpenAI in Talks With TCS to Build Major AI Compute Hub in India

By siliconindia | Thursday, 04 December 2025, 06:32 Hrs

OpenAI and TCS in advanced talks to set up large-scale AI compute infrastructure in India
Collaboration may include co-developing agentic AI tools for enterprises
OpenAI expected to become anchor client for TCS’s new HyperVault data centers

OpenAI is in advanced discussions with Tata Consultancy Services (TCS) to build a major artificial intelligence compute infrastructure in India, according to a report. The partnership is expected to mark the launch of 'Stargate India', OpenAI’s local expansion initiative, while strengthening TCS’s push to become a global leader in AI-driven services.

As part of the plan, OpenAI is exploring a lease of at least 500 MW of data center capacity from HyperVault, TCS’s new data center subsidiary. This capacity would be used to train and run OpenAI’s advanced AI models in India. The companies are also evaluating opportunities to jointly create agentic AI solutions for large enterprises in sectors like banking, retail, consumer goods and manufacturing, using frontier GPT models.

OpenAI is expected to be the first anchor client of HyperVault’s upcoming facilities. These centers will also serve hyperscalers, global corporations, sovereign cloud operators, government agencies and Tata Group companies. With data localization gaining global traction, OpenAI has been expanding local data residency options across India, Japan, Singapore and South Korea.

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Senior TCS executives are reportedly in the United States to finalize the partnership structure, with a formal announcement likely before the year ends. However, OpenAI is not expected to take an equity stake in HyperVault. Sources say Tata Group wants to retain full ownership and avoid relying too heavily on a single customer, ensuring space for other AI leaders such as Anthropic.

The collaboration aligns with TCS’s broader strategy to build next-generation AI systems, expand its ecosystem partnerships and upskill its global workforce. It also comes at a time when India’s AI market is projected to grow rapidly, reaching $17-22 billion by 2027.