Reliance shares jump as Facebook invests in company's AI venture
What's the story
Shares of Reliance Industries (RIL) gained over 2% on Monday following the announcement that Meta Platforms' Facebook Overseas will acquire a 30% stake in the AI venture launched by the Mukesh Ambani-led conglomerate. RIL will retain a 70% share in Reliance Enterprise Intelligence Ltd, according to the company's official filing. The two partners plan to jointly invest an initial ₹855 crore into the venture. At the time of writing, RIL shares on the NSE were trading 2.18% higher at ₹1,483.
Service offerings
REIL's mission and Mukesh Ambani's announcement
REIL will develop, market, and distribute enterprise AI services. The joint venture is expected to deliver affordable, secure, and scalable AI solutions by leveraging Reliance's infrastructure and digital network with Meta's AI capabilities. Ambani had announced the formation of Reliance Intelligence at RIL's Annual General Meeting on August 29.
Strategic goals
Reliance Intelligence's objectives and data center developments
Reliance Intelligence has four key objectives: to create India's next-gen AI infrastructure, establish global partnerships, develop AI services for India, and nurture AI talent. Ambani had said at the AGM that work has already started on gigawatt-scale data centers in Jamnagar. These facilities will be delivered in phases according to India's growing needs and are specifically designed for AI training and inference.
Global reach
Global partnerships and affordable AI services
Reliance Intelligence will also cater to global partnerships, bringing together tech giants from around the world into open-source communities. Ambani had said that Reliance Intelligence will provide trusted, easy-to-use AI services for consumers, small businesses, and enterprises. The services will be reliable at scale and affordable for every Indian.