Porsche inks $1.5 billion deal for AI deployment with India's largest IT services firm Tata Consultancy

Porsche inks $1.5 billion AI deal with India’s Tata Consultancy Skip Navigation Markets Business Investing Tech Politics & Policy Video Watchlist Investing Club PRO Livestream Menu Key Points Porsche signed a five-year deal worth $1.5 billion with Indian IT services giant TCS. TCS will establish a specialized hub to oversee AI deployment at Porsche. As part of the deal, Porsche will transfer its IT consultancy business to TCS for around 320 million euros General atmosphere at the 2025 Icons of Porsche Festival at The Slab on November 22, 2025 in Dubai, United Arab Emirates. Maya Cellixa | Getty Images 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. watch now VIDEO 5:53 05:53 CLSA downgrades Indian IT majors: Why legacy names could be AI losers Inside India AI is widely expected to hurt the business prospects of Indian IT services companies. The Nifty IT index, a benchmark for stocks of IT service companies, is down nearly 20% from the beginning of the year, as compared to the Nifty 50, which has slipped just over 7%. The deal with Porsche will be effective once the Indian software giant completes the acquisition of MHP, which employs around 4,500 people. With this acquisition, TCS aims to "industrialize AI at scale for Porsche," said K. Krithivasan, chief executive and managing director of TCS. It will also enhance the presence of the Indian software service company in the German market and among European automotive and industrial customers. The sale of MHP is part of Porsche's "Sportwagenschmiede 35" strategy, which aims to improve the profitability and cash flow of the automaker. "We are firmly aligning our company with our core business ," Leiters said last month, adding that the key element of the strategy would be to streamline the operations at all levels Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.