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Alongside broader market appreciation, Meta Platforms (META +3%) is gapping higher today on a report from The Information regarding the tech titan and OpenAI (MSFT), the company behind ChatGPT, have separately sought an AI alliance with Reliance, a major conglomerate in India, with businesses in telecom, retail, and oil & gas.

It is still unclear at this point whether Meta and OpenAI will partner alongside Reliance or if the two will compete against each other. Given the separate discussions, we surmise the two are competing. No comments from Meta were provided to The Information. As such, the report revolves mostly around OpenAI, noting that the terms of the alliance centered on Reliance Jio, the telecom division, and OpenAI's ChatGPT. However, it was stated that Reliance is open to running AI models from Meta and OpenAI in its planned three-gigawatt data center, topping some of the currently largest data centers built.

• For Meta, the alliance would be significant. Given its expansive consumer base, India has quickly emerged as a critical market for Big Tech. AI has only accelerated tech companies' desire to fortify their presence in the country. The partnership with Reliance Jio, which boasts around half a billion subscribers, would immediately give Meta access to a massive consumer base.
• Meta has already been steadily building its footprint in India. Late last year, the company announced a strategic partnership with IndiaAI to advance open-source AI R&D. CEO Mark Zuckerberg has been a proponent of open-source AI, leveraging the technology to bring in ad dollars and improve the company's social media platforms. This could be what sets Meta apart from OpenAI and helps seal a partnership.
• Furthermore, Meta has worked with Reliance in the past. In 2020, the company invested $5.7 bln in Jio Platforms. Also, Reliance has been open to partnerships with U.S. companies, forming one with NVIDIA (NVDA) in late 2023 to further AI interests in the region.
• Still, OpenAI is not sitting on its hands while Meta tries to gain a leg up. OpenAI is reportedly looking to trim its subscription price from $20 to a few dollars a month, which could be enticing enough to Reliance. Also, the report noted that the possibility being discussed is that Reliance Jio distributes ChatGPT, which might be technologically superior to Meta AI for specific use cases Reliance is searching for.

Meta forming a partnership with Reliance would give it a massive leg up in the race for AI and digital dominance in India. Details are still murky, as it remains unclear who will be the one shaking hands with Reliance. Nevertheless, given that reports indicate Meta and OpenAI could run AI models on a planned data center in India, it is clear that both tech firms are aggressively moving toward extracting untapped potential from India.