OpenAI Partners with Tata Group to Build AI-Ready Infrastructure in India
OpenAI, the pioneering organization behind advanced AI models such as ChatGPT, has recently announced a strategic partnership with India’s Tata Group, aiming to secure an initial 100 megawatts of AI-ready data center capacity. This collaboration is anticipated to scale up to a substantial 1 gigawatt, reinforcing OpenAI’s commitment to enhancing its enterprise and infrastructure presence in one of its most rapidly growing markets.
Expanding Enterprise Adoption through the Stargate Project
On Thursday, OpenAI confirmed that its partnership with Tata Group forms a key component of the Stargate project. This initiative is designed to cultivate AI-ready infrastructure that promotes global enterprise adoption. OpenAI becomes the inaugural customer of Tata Consultancy Services’ (TCS) HyperVault data center business, launching with 100 megawatts of capacity. Additionally, the agreement allows for the deployment of ChatGPT Enterprise across Tata’s expansive workforce, which includes hundreds of thousands of employees, and the standardization of AI-native software development using OpenAI’s cutting-edge tools.
India’s Growing Market for AI Technologies
The collaboration is part of the “OpenAI for India” initiative and signifies the increasing relevance of the Indian market for OpenAI. Recent estimates from CEO Sam Altman indicate that India boasts more than 100 million weekly users of ChatGPT, comprising students, educators, developers, and entrepreneurs. This substantial adoption trend positions India as a vital growth hub, compelling OpenAI to deepen its investments in local enterprise and infrastructure.
Ensuring Data Locality and Compliance
The establishment of local data center capacity in India allows OpenAI to run its most sophisticated models within the country, thereby minimizing latency and adhering to data residency and compliance standards, particularly in regulated sectors. For enterprises handling sensitive data, hosting computation domestically is not just advantageous; it’s often necessary under local digital infrastructure regulations. This could broaden OpenAI’s access to enterprise clients that prioritize in-country processing capabilities.
Significance of Infrastructure Scaling
The initial commitment of 100 megawatts represents a significant investment in AI infrastructure, which is heavily reliant on high-capacity graphics processing units (GPUs) necessary for training and inference of complex models. The intended scaling to 1 gigawatt would position the Tata facility among the largest AI-centric data centers globally, highlighting OpenAI’s long-term aspirations in the region.
Strategic Collaborations for Broader Impact
Alongside infrastructure development, OpenAI and Tata Group aim for a strategic enterprise collaboration designed to expedite AI adoption across various Tata businesses. The plan includes rolling out ChatGPT Enterprise to TCS employees and utilizing OpenAI’s Codex tools to bring standardization to AI-native software development practices.
Building Skills for the AI Era
N. Chandrasekaran, chairman of Tata Sons, stated that the partnership with OpenAI is instrumental in establishing “state-of-the-art AI infrastructure in India,” along with initiatives aimed at reskilling the nation’s workforce for an AI-driven future.
Further Developments and Future Prospects
While financial terms of the deal remain undisclosed, the collaboration signifies a profound step towards building a resilient AI ecosystem in India. In November 2025, TCS had secured significant backing for developing AI-ready infrastructure, augmenting its HyperVault platform with plans estimated around ₹180 billion (approximately $2 billion) aimed at supporting large-scale computing workloads.
OpenAI intends to roll out certification programs in India, with TCS being the first organization outside the U.S. to participate. This initiative is expected to empower professionals across various sectors to acquire practical AI skills, thereby bolstering the overall competence in the technology landscape.
To further its presence, OpenAI plans to establish new offices in Mumbai and Bengaluru, supplementing its existing operations in New Delhi. This expansion aims to facilitate enterprise partnerships, engage developers, and coordinate local regulatory matters effectively as the company fortifies its footprint in India.
This announcement aligns with India’s ongoing AI Impact Summit in New Delhi, featuring prominent global leaders, including Sam Altman and other executives, who are showcasing diverse AI applications across multiple sectors such as finance, healthcare, and education. Through this multifaceted approach, OpenAI is making waves in one of the world’s largest internet markets, showcasing a clear path towards integrated AI solutions.
Together, the build-out of data centers, enterprise collaborations, and the enhancement of the partner ecosystem highlight OpenAI’s most ambitious foray into the Indian market to date.
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