Reliance Industries, led by billionaire Mukesh Ambani, is making a major pivot into artificial intelligence, positioning it as the conglomerate's next significant growth engine. The company plans to invest between $12 billion and $15 billion into advanced AI infrastructure. This strategic shift aims to transform Reliance into a deep-tech powerhouse, with analysts from Morgan Stanley estimating its AI vertical could achieve a valuation of $30 billion by 2027.^[1][2][3][4] ### Reliance's AI Ambition Takes Shape Mukesh Ambani has described the opportunity in AI as "just as large, if not larger" than the digital services revolution Jio brought a decade ago. He stated that Reliance Intelligence aims to deliver AI everywhere for every Indian, much like Jio delivered digital connectivity.^[1][5] This ambition was highlighted at Reliance's annual general meeting in August, where the term "AI" was mentioned 80 times, underscoring its central role in the company's future.^[1] Reliance's strategy revolves around four key pillars: infrastructure, partnerships, services, and talent. The company is focusing on building gigawatt-scale, AI-ready data centers to form the backbone of its AI operations. It is also collaborating with global technology leaders to bring advanced AI solutions to India. Furthermore, Reliance plans to develop AI-powered services tailored for Indian consumers, small businesses, and various sectors like education, healthcare, and agriculture. A significant investment in upskilling India's AI workforce is also part of this broad strategy.^[6] ### Building AI Infrastructure and Key Partnerships A core part of Reliance's AI investment is the development of a 1-gigawatt (GW) AI-ready data center. Morgan Stanley analysts estimate that Reliance will deploy approximately $12-15 billion on this infrastructure. This includes about $7 billion for the data center itself and $5 billion for deploying roughly 250 megawatts of chips directly.^[1][3][6][7] The company plans to underwrite about 25% of this capacity for its own use. The remaining capacity will be leased out as "Datacenter as a Service" to other major technology players, including hyperscalers and large language model (LLM) providers.^[1][3][6][7] Early phases of this data center construction are already underway in Jamnagar, Gujarat.^[6] Reliance has also formed crucial alliances to bolster its AI capabilities. It recently incorporated Reliance Enterprise Intelligence Limited (REIL), a joint venture with Meta Platforms' subsidiary, Facebook Overseas, Inc.^[1][2][8][9] Reliance Intelligence holds a 70% stake in REIL, while Meta holds the remaining 30%.^[8][9] The partners have made an initial commitment of approximately ₹855 crore, which is about $100 million, to develop, market, and distribute enterprise AI services. M^{[1][2][6][8][9]}eta CEO Mark Zuckerberg stated that this partnership is a "key step forward towards ensuring that everyone has access to AI and eventually super intelligence." He added that the venture will deliver Meta's open-source Llama AI models to Indian businesses. ^[5]Beyond Meta, Reliance is also partnering with other global tech giants like Google and Azure to leverage their cloud and AI infrastructure. T^[2][3][6]his multi-faceted approach aims to combine Reliance's deep domain knowledge across various industries with cutting-edge AI technology. ^[9]### Jio's Expanding AI Footprint Reliance's telecom arm, Jio Platforms, is playing a vital role in the company's AI expansion. Jio is collaborating with AMD, Cisco, and Nokia to develop an Open Telecom AI Platform. This platform, announced at Mobile World Congress 2025, aims to deliver AI-driven solutions to telecom operators and service providers, integrating AI and automation into network operations. M^[10][11]athew Oommen, Group CEO at Reliance Jio, emphasized that this initiative goes beyond automation, aiming for "AI-driven, autonomous networks that adapt in real-time." ^[11]Jio Platforms is also working with Nvidia to create affordable AI services and applications, offering GPU-as-a-service at competitive prices. A^[12] large AI data center in Jamnagar is being built for both internal use and commercial offerings, with a focus on using green energy to reduce operational costs and make AI more accessible. A^[12]mbani also unveiled "Jio Brain" at the company's 47th AGM, a comprehensive suite of tools and platforms designed to accelerate AI adoption across Jio's operations, improve decision-making, and enhance customer understanding. ^[13]To foster AI literacy, Jio launched "AI Classroom" in October 2025, a free foundational course accessible on various devices. This four-week program, in collaboration with Jio Institute, provides hands-on exposure to AI tools and fundamentals, aiming to prepare Indian students for an AI-driven future. ^[14]### Strategic Advantage and Future Outlook Reliance's pivot to AI is seen as a strategic evolution, leveraging its existing digital, energy, and consumer ecosystems. The company plans to deploy energy-intensive AI data centers alongside its large renewable energy, battery storage, and solar capabilities. This integration turns its energy business into a captive market for its AI infrastructure, providing a unique competitive advantage. ^[1][3]Mayank Maheshwari, an analyst at Morgan Stanley, noted that the firm expects a return on capital employed (ROCE) of approximately 11% on these initial investments, based on current token prices from large language model providers. H^[1][4]e added that the valuation case for Reliance's AI vertical is compelling, projecting the $30 billion valuation by 2027 based on a minimum of 2x price-to-book ratio, considering global peers. ^[1][4]Ambani has consistently stated his commitment to making AI accessible and affordable for every Indian. He aims to create the world's lowest AI inferencing cost within India, ensuring that AI applications are more affordable than anywhere else. T^[13]his aggressive push into AI positions Reliance not only to lead India's technological transformation but also to compete with global deep-tech powerhouses. The success of this ambitious venture will depend on effective execution and its ability to capture India's burgeoning AI market. ^[4]

AI Insights Hub