OpenAI and Anthropic announced major joint ventures backed by global private equity firms to expand enterprise AI adoption.
Analysts say the rise of frontier AI firms is pressuring India’s traditional IT services model and reshaping the country’s tech ecosystem.
TCS and Wipro reported weak revenue growth as investors increasingly shift focus toward AI-led technology markets in Asia.
OpenAI, Anthropic Take On India’s Tech Giants in High-Stakes AI Battle
OpenAI and Anthropic are deepening their India presence through major private equity-backed ventures, intensifying pressure on traditional IT firms
Summary
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OpenAI and Anthropic are increasingly tapping private equity firms in India, placing them in direct competition with major IT services companies, including some of the country’s largest technology firms.
The AI giants are looking to embed advanced AI services across enterprises, a move that could reshape India’s nearly $300 billion technology market.
The rise of frontier AI companies has already intensified concerns over the future of India’s IT services industry, with analysts warning that traditional outsourcing models face growing disruption.
OpenAI on Tuesday announced a $10 billion joint venture called the Deployment Company, backed by 19 investors. The investor group includes TPG, Brookfield, Bain Capital, SoftBank, and Dragoneer, collectively representing nearly 2,000 portfolio companies.
Soon after OpenAI’s announcement, Anthropic unveiled a separate $1.5 billion joint venture with Blackstone, Hellman & Friedman, Goldman Sachs, and General Atlantic to expand the adoption of its AI model, Claude.
According to a report by The Economic Times, these partnerships may ultimately create opportunities rather than pose pure threats to India’s technology ecosystem.
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Experts cited in the report said the joint ventures are likely to rely on Indian IT firms for large-scale implementation and execution, while frontier AI companies capture the higher-value strategy, consulting, and transformation layers of enterprise AI adoption.
AI Tech Race in Indian Markets
Earlier this year, Tata Group and OpenAI announced a “multi-dimensional strategic partnership.” Under the agreement, OpenAI will become the first tenant of Tata’s HyperVault data centre unit, which has a planned capacity of 100 megawatts.
Infosys also entered into a strategic partnership with Anthropic in February to build and deploy enterprise AI solutions across sectors including telecommunications, financial services, manufacturing, and software development.
Indian IT Stocks Under Pressure
Foreign Portfolio Investors (FPIs) have been steadily pulling money out of Indian markets, increasingly shifting capital toward South Korea and China, where investors see stronger AI-driven technology growth opportunities.
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Analysts say India’s technology sector is now being forced to pivot from a “service-first” model to a “product-and-intelligence” approach to remain globally competitive.
Tata Consultancy Services (TCS), India’s largest IT services company, reported a 2.4% decline in annual revenue in constant currency terms for FY26 — its first annual decline since listing publicly. Wipro, meanwhile, posted a revenue decline for the third consecutive year, down 1.6%.
Brokerage estimates suggest that major IT firms including TCS, Infosys, HCLTech, Wipro, and Tech Mahindra are expected to post modest annual revenue growth of 2-5% on average in FY27.
As per reports, despite the near-term slowdown, Infosys chairman Nandan Nilekani has projected a $300-400 billion market opportunity in AI-first services by 2030.