Tata Consultancy Services Ltd. has struck a strategic alliance with chipmaker Advanced Micro Devices Inc. to accelerate the deployment of AI for enterprise clients, a move that underscores the company’s pivot to become the world’s largest AI services company.
The collaboration, announced on Wednesday, will see TCS co-develop industry-specific AI solutions using AMD’s high-performance computing platforms EPYC CPUs and Instinct GPUs.
The partnership aims to modernise legacy workloads and build “AI-powered digital workplaces”, addressing a critical bottleneck for global firms struggling to scale Generative AI initiatives beyond the proof-of-concept stage.
TCS-AMD deal: The AI focus
The TCS-AMD deal comes just days after India’s IT services firm reported 17.3% sequential jump in annualised AI services revenue to $1.8 billion in the third quarter ended 31 December While that’s a fraction of TCS’s $30-billion top line, AI is fast becoming a central pillar of growth—especially when traditional IT spending remains cautious due to macroeconomic headwinds.
“Our collaboration with AMD is a significant step in scaling AI for enterprise,” TCS CEO Krithi Krithivasan said “We’re enabling organisations to move from AI experimentation to AI at scale and deployment.”
Krithivasan has been vocal about this AI transition in recent post-earnings commentary, positioning 2026 as a “transformative year” where clients will prioritise return on investment over novelty. In his Q3 earnings call earlier this week, he said that TCS’s “five-pillar strategy” to become the world’s largest AI-led technology services company is gaining traction, with clients increasingly integrating AI into core business functions like drug discovery and manufacturing quality control.
Essentially, TCS is betting that its ability to offer an end-to-end “AI-first” architecture—backed by silicon leaders like AMD—will differentiate it from rivals still focused on labour arbitrage.
The contours of the TCS-AMD deal
Under the new agreement, TCS will build dedicated “centres of excellence” to upskill its workforce on AMD’s hardware and software stack. This follows a broader talent overhaul at the Mumbai-based firm — TCS recently reported that its AI-skilled workforce has swelled to 217,000 associates, more than double the number from a year ago.
The partnership targets specific verticals with high-compute needs. For the life sciences sector, the companies will develop frameworks for drug discovery, while the banking and financial services (BFSI) sector will see new tools for intelligent risk management.
TCS-AMD deal: The broader AI push
The TCS-AMD deal is the latest in a string of aggressive moves by the IT firm to cement its infrastructure capabilities. In the last quarter alone, TCS expanded its partnership with Google Cloud to adopt the Gemini Enterprise platform and announced investments in “HyperVault” a plan to build gigawatt-scale AI-ready data centres.
While TCS’s overall Q3 revenue growth was a modest 0.8% in constant currency, the surge in AI-related bookings suggests that the company’s bet on full-stack AI transformation—from chip-level optimisation with partners like AMD to top-tier application development—is beginning to pay dividends.
“AI adoption is accelerating, and unlocking its potential requires a new scale of high-performance computing,” said AMD Chair and CEO Dr. Lisa Su. “We are helping customers translate AI innovation into new growth opportunities”.