OpenAI and India's Tata Consultancy Services (TCS) announced a significant partnership to build local data centers. The AI startup will become the first customer of TCS's data center business, constructing a facility with an initial 100 megawatt capacity that can scale up to 1 gigawatt.

This move addresses OpenAI's need for secure, compliant infrastructure in India, crucial for running advanced models locally. Tata will deploy ChatGPT Enterprise across its employees and use OpenAI's Codex for software development. TCS shares rose nearly 2% on the deal, offering some relief after recent AI-linked volatility. The collaboration forms part of OpenAI's broader 'OpenAI for India' initiative, which also includes opening the company's first offices in the country. India's rapid emergence as a major AI market is underscored by this deal, hosting one of the world's largest AI customer bases and attracting significant investment.