Tata Group has outlined a strategy to build a full AI stack, covering semiconductors, data centres, enterprise software and physical infrastructure, according to the chairman's letter in Tata Sons' Annual Report 2025-26.
Chairman N Chandrasekaran said the group sees AI as a long-term opportunity that goes beyond developing AI models, with a focus on building the infrastructure needed to support the technology.
"I have said before that AI is a profound, civilizational shift and we are all working to understand how to build the infrastructure for intelligence that can be accessed by all," he said.
The report said Tata Consultancy Services (TCS) has reached an annualised AI revenue of $2.6 billion in the first quarter of FY27. It also announced the 1 GW HyperVault AI data centre platform and partnerships with OpenAI, Microsoft, AWS and Anthropic.
Chandrasekaran said enterprises need more than access to AI technology, adding that organisations must organise their data and integrate it into IT systems that have developed over decades.
"The opportunities offered by AI cannot be captured by simply giving organisations access to AI technology. Enterprises need to organise their data and integrate it into IT systems that have evolved over decades," he said.
He said the group is building capabilities across multiple layers of the AI ecosystem.
"Enterprise IT is one layer of AI. The wider opportunity for India is to bring down the cost of intelligence itself. Across the Group, we are working towards enabling the full stack that does this: the silicon that computes it; the data centres that host it; the enterprise systems that apply it; and the physical platforms, in energy, mobility and defence, where it meets the real world," the letter said.
The report also said Tata Electronics is building India's first high-volume semiconductor fabrication plant in Gujarat, has packaged India's first indigenous microprocessor and plans to develop advanced packaging, semiconductor materials and electronics solutions.
It added that TCS and Tejas Networks delivered “India's first indigenously” designed 4G and 5G network, making India the fifth country to design, develop and commercialise an industry-standard 4G/5G mobility stack. The report said Tejas Networks is investing in 6G and AI.