Stargate Initiative Kicks Off with OpenAI and Tata Deal

OpenAI partners with Tata Consultancy Services as its first customer under the Stargate initiative, focusing on AI data centres. The venture, valued at $500 billion, aims to establish a robust infrastructure for AI, benefiting TCS. Major tech firms are increasing investments in India's AI sector.

OpenAI is set to become the inaugural customer of Tata Consultancy Services' (TCS) data centre business in India, marking the start of the global AI infrastructure initiative, Stargate. Initially, this partnership will involve 100 megawatts of data capacity.

The Stargate initiative is a groundbreaking $500 billion multi-year commitment to developing AI data centres for training and inference. The venture is supported by major investors and represents a significant strategic shift for TCS, which previously announced plans to invest up to $7 billion in a 1 gigawatt data centre unit in India.

India is witnessing a surge in high-value AI infrastructure expenditures, with global tech giants like Google, Amazon, Meta Platforms, and Microsoft increasing their investments. Concurrently, domestic powerhouses such as Reliance and Adani Group are also enhancing their AI infrastructure spending. Furthermore, TCS's parent company, Tata Group, is planning to deploy ChatGPT Enterprise within its operations over the coming years, underscoring the growing influence of AI in corporate strategies.

(With inputs from agencies.)