OpenAI–TCS Talks Advance on HyperVault AI Data Centre Partnership: Reports

OpenAI is in advanced discussions with Tata Consultancy Services (TCS) to partner on building large-scale AI compute infrastructure in India and co-developing agentic AI solutions for enterprises, The Economic Times reported, citing people familiar with the matter.

According to the report, OpenAI is negotiating a leasing agreement of at least 500 MW of data-centre capacity from HyperVault, TCS’ new data-centre subsidiary. 

The proposed arrangement, the report claimed, would make OpenAI the first anchor tenant in HyperVault’s upcoming gigawatt-scale, AI-ready data centres.

AIM has written to TCS for confirmation and more inputs on the partnership. 

The partnership is expected to support TCS’ ambition of becoming the “world’s largest AI-led services company,” with both firms exploring agentic AI solutions for sectors such as BFSI, retail, consumer goods and manufacturing, the report said.

Senior TCS leadership is currently in the US to finalise commercial terms, with a formal announcement targeted before the end of the year, ET reported.

There are, however, no plans for any equity infusion from OpenAI into HyperVault at this stage, as the Tata Group is cautious about diluting equity or relying heavily on a single customer.

The collaboration would mark the launch of OpenAI’s Stargate India chapter, forming part of its strategy to build sovereign AI infrastructure across key global markets.

In October this year, TCS had announced the incorporation of a new wholly owned subsidiary, HyperVault AI Data Center Limited (“HyperVault”).

In a strategic shift that could secure steady, recurring income rather than one-off project fees, the company said it expects the contracts linked to its data-centre expansion to be long-term agreements with hyperscalers and AI companies.

These will focus on “long-term committed and annuity revenues”, even as negotiations remain underway.

Subsequently, the Indian IT giant announced that it secured a $1 billion investment from global alternative asset manager TPG to accelerate the expansion of HyperVault.