Reliance Industries, India’s leading company in terms of market capitalization, is not shying away from the AI craze that has swept the technology industry. During the company’s 47th annual general meeting, Chairman Mukesh Ambani and other executives emphasized the significance of AI by mentioning it close to thirty times in just a two-hour span. They outlined plans to incorporate AI technology across Reliance’s diverse array of businesses, spanning telecommunications, retail, and energy sectors.
Moreover, Reliance revealed its intentions to establish large-scale, AI-ready data centers in Jamnagar, Gujarat, powered by eco-friendly energy sources maintained by the company. Ambani asserted that these data centers would result in reduced AI inferencing costs in India, potentially making AI applications more budget-friendly. Despite these ambitious plans, Reliance fell short in providing concrete details regarding the feasibility of their initiatives and the expected timeline for accomplishment.
Jio, Reliance’s telecommunications subsidiary, is actively developing an extensive AI suite known as “Jio Brain” to expedite the integration of AI technologies across its operations and other Reliance entities. Collaborating with Jio Institute, the company is working on an AI program aimed at fostering AI talent within India. Additionally, Reliance intends to offer Jio users up to 100 GB of complimentary cloud storage through the upcoming Jio AI-Cloud service set to launch around Diwali in October.
During the presentation, Reliance showcased JioPhonecall AI, a service for call recording and transcription, and introduced Jio TvOS, an operating system for their set-top boxes featuring an AI-powered voice assistant. While India has historically lagged behind in the global AI race, the recent surge in activity from major corporations like Reliance and Tata Group, along with startup ventures focusing on AI app development and infrastructure, heralds a promising future for AI technology in the country.
Despite the significant strides made in AI integration, Reliance refrained from addressing the highly anticipated IPOs of Jio and Reliance Retail, both dominant players in their respective sectors in India. Observers and analysts are eagerly awaiting updates on these potential IPOs, especially in light of RIL chairman’s previous statement about IPO plans for the telco and retail arms within a five-year timeline. Ambani expressed confidence in the potential for Jio and Retail to double their revenue and EBITDA within the next three to four years, fueling speculations about a potential listing of Jio next year with a valuation exceeding $110 billion.
In 2020, Jio secured approximately $20 billion in funding from major investors such as Meta, Google, Mubadala, ADIA, and KKR, valuing the telecom operator at $65 billion. Similarly, Reliance Retail, which raised $7 billion from external investors in 2020, secured an additional $1.85 billion last year at a valuation of $100 billion. These developments underscore Reliance’s firm commitment to innovation and strategic growth in the rapidly evolving AI landscape.