Porsche inks $1.5 billion AI deal with India’s Tata Consultancy
Porsche has entered a $1.5 billion, five-year partnership with Tata Consultancy Services to accelerate its digital and AI transformation. As part of the deal, TCS will acquire Porsche's IT consulting subsidiary, MHP, to help industrialize AI across the automaker's operations.
Why it matters
This deal highlights the growing trend of traditional automotive manufacturers outsourcing digital infrastructure to specialized IT firms to remain competitive in a software-driven market.
Porsche has signed a five-year contract worth 1.25 billion euros ($1.46 billion) for artificial intelligence with India's largest IT services firm, Tata Consultancy Services.
As part of the deal, TCS will acquire Porsche's IT consulting business, MHP, for 320 million euros, the company said in a release.
This will combine Porsche's " automotive expertise with TCS's digital and AI capabilities," Michael Leiters, chairman of Porsche, said in the press release. The partnership will boost the European sports-car maker's innovation, efficiency and competitiveness "in an increasingly data- and software-driven world of mobility."
Since the start of the year, TCS has secured multiple AI-led business transformation deals and has said its annualized AI revenues were $2.6 billion in the June quarter, up 13.6% from a quarter earlier.
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