OpenAI is set to become the inaugural client for Tata Consultancy Services' (TCS) data centre operations. The agreement includes an initial 100 megawatts of capacity, contributing to the global AI infrastructure initiative known as Stargate. This multi-year, $500 billion project is designed to build data centres essential for AI training and inference, attracting substantial investor backing.

The partnership represents a significant win for TCS, which last year announced a strategic investment of up to $7 billion to develop a 1-gigawatt data centre unit in India. This move aligns with a broader trend of increased AI infrastructure spending across India, with major global tech firms like Google, Amazon, Meta, and Microsoft, alongside domestic giants Reliance and Adani Group, escalating their investments.

In parallel, OpenAI's parent company, Tata Group, intends to integrate ChatGPT Enterprise across its extensive operations over the coming years. OpenAI has also noted the substantial user base in India, with over 100 million weekly ChatGPT users.