Meta Platforms (META, Financial) is experiencing a notable rise in its stock price, driven by reports that it is seeking an AI partnership with Reliance, a major Indian conglomerate. OpenAI, backed by Microsoft (MSFT, Financial), is also in talks for a similar alliance. Reliance operates in telecom, retail, and oil & gas sectors.
Currently, it's uncertain if Meta and OpenAI will collaborate with Reliance or compete against each other, though separate discussions suggest competition. The focus of the report is on OpenAI's negotiations, particularly involving Reliance Jio, its telecom division, and ChatGPT. Reliance is open to using AI models from both Meta and OpenAI in a planned large-scale data center.
- For Meta, partnering with Reliance Jio, which has about half a billion subscribers, would provide access to a vast consumer base in India, a rapidly growing market for Big Tech.
- Meta has been expanding in India, forming a strategic partnership with IndiaAI last year to advance open-source AI research. CEO Mark Zuckerberg supports open-source AI, which could distinguish Meta from OpenAI and secure a partnership.
- Meta has a history with Reliance, having invested $5.7 billion in Jio Platforms in 2020. Reliance has also partnered with NVIDIA (NVDA, Financial) in 2023 to enhance AI initiatives in the region.
- OpenAI is actively pursuing its partnership, potentially lowering its subscription price to attract Reliance. There is speculation that Reliance Jio may distribute ChatGPT, which might outperform Meta AI in specific applications.
Securing a partnership with Reliance would significantly boost Meta's position in the AI and digital landscape in India. While details remain unclear, both Meta and OpenAI are keen on leveraging India's potential through a partnership with Reliance.
