Reviewed by Gotrade Internal Analyst
Gotrade News - OpenAI just locked in its biggest infrastructure deal in India with Tata Group. This aggressive move coincides with a massive funding round that could skyrocket the company's valuation significantly.
Key Takeaways:
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OpenAI partners with Tata Group for a 100MW data center, with ambitions to scale to 1GW.
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A new funding round is projected to push the company's valuation past US$850 billion.
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This physical expansion puts OpenAI in direct rivalry with Microsoft and Google’s cloud dominance.
According to a report from The Tech Buzz, OpenAI has secured 100 megawatts of data center capacity with a long-term target of hitting 1 gigawatt. This physical footprint signals a strategic pivot from mere experimentation to full-scale deployment in the Asian market.
Techinasia reported on Thursday (Feb 19) that OpenAI is finalizing a funding round that could exceed US$100 billion. Strategic investors like Amazon, SoftBank, and Nvidia are rumored to be actively involved in this initial investment phase.
The company's post-money valuation is predicted to surpass US$850 billion, even as the pre-money valuation holds steady at US$730 billion. This massive figure cements OpenAI’s status as the market leader, making it increasingly hard for global competitors to catch up.
OpenAI also plans to set up brick-and-mortar offices in Mumbai and Bengaluru before the year ends. This physical presence aims to capture India's corporate market, which is currently racing to adopt artificial intelligence technologies.
This move places OpenAI in direct infrastructure competition with established tech giants. Microsoft and Google have already poured billions into building cloud infrastructure across the region.
The new partnership with Tata suggests OpenAI wants more control over its own destiny. They appear to be reducing their total reliance on Microsoft’s Azure infrastructure in strategic regions like India.
Strict data regulations in India demand local storage for sensitive sectors like banking and healthcare. Having dedicated data center capacity helps OpenAI navigate these data sovereignty rules more efficiently.
Tata Group also gains a strategic edge, positioning itself as a key player in building India’s AI ecosystem. This collaboration could drive significant consulting and tech integration revenue for its IT services arm.
The 1-gigawatt target is roughly equivalent to a small power plant, signaling serious long-term ambition. This scale is necessary to train future models and serve millions of corporate API requests simultaneously.
For tech investors, this maneuver shows that capital expenditure on AI infrastructure isn't slowing down anytime soon. The battle between major players is shifting from just language model development to the mastery of physical assets.
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Reference:
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The Tech Buzz, OpenAI locks 100MW Tata data center deal, targets 1GW in India. Accessed on February 19, 2026
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Techinasia, OpenAI funding round could exceed $100b: sources. Accessed on February 19, 2026
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