TCS Partners AMD for Enterprise AI Scale-Up, Boosts Services Revenue
Overview
Tata Consultancy Services (TCS) has forged a strategic partnership with chipmaker Advanced Micro Devices (AMD) to help enterprises transition artificial intelligence initiatives from pilot stages to full-scale production. This collaboration, announced Wednesday, aims to modernize legacy IT systems and co-develop industry-specific AI solutions. The move follows TCS's report of AI services generating $1.5 billion in annualized revenue, representing nearly 5% of its Q3 earnings.
Stocks Mentioned
Tata Consultancy Services (TCS) announced Wednesday a significant partnership with U.S. semiconductor giant Advanced Micro Devices (AMD). The alliance aims to accelerate the deployment of artificial intelligence across enterprises, moving solutions from pilot projects into widespread production.
Strategic AI Expansion
The collaboration will combine TCS's deep domain knowledge and systems integration capabilities with AMD's high-performance computing and AI hardware. Both companies will co-develop tailored AI and generative AI solutions. This initiative is designed to modernize hybrid cloud and edge computing environments, deploy AI-driven digital workplace tools, and speed up innovation across diverse workloads. TCS also plans to upskill its workforce on AMD's latest platforms.
Strong AI Traction for TCS
This strategic move comes as TCS disclosed that its AI-related services have already generated over $1.5 billion in annualized revenue, accounting for approximately 5% of the company's total revenue in the third quarter of the current financial year. Management highlighted that AI is outperforming overall revenue growth, with a 16.3% sequential increase and a 38.2% year-on-year rise in constant currency terms. TCS remains confident that its new-age services will contribute close to $11 billion in annualized revenue.
Sector-Specific Solutions Planned
The partnership will focus on creating generative AI frameworks for key sectors including life sciences, manufacturing, and banking and financial services. Use cases will span areas such as drug discovery, smart manufacturing, and intelligent risk management. AMD's Chair and CEO, Lisa Su, emphasized the escalating demand for AI and the need for high-performance computing and industry collaboration. TCS CEO K Krithivasan stated the partnership is crucial for scaling AI for enterprises, enabling clients to move beyond experimentation to large-scale deployment.
TCS will integrate AMD Ryzen-powered solutions for workplace transformation and leverage AMD EPYC CPUs, Instinct GPUs, and AI accelerators. AMD's embedded computing portfolio will support edge computing and industrial digitalization efforts. Shares of TCS traded at ₹3,214.30, reflecting a 1.64% increase on the NSE.
