Porsche inks US$1.5 billion AI deal with India’s Tata Consultancy

[STUTTGART] Porsche partnered with Tata Consultancy Services for deploying artificial intelligence in a 1.25 billion euros (US$1.5 billion) deal, while agreeing to sell its consulting unit to the Indian software services company.

The five-year partnership aims to enable AI across Porsche’s engineering, manufacturing, operations and customer experience functions, according to a statement by TCS on Monday (Aug 24). The Indian firm will also buy the sports carmaker’s Germany-based consulting unit MHP Management- und IT-Beratung GmbH for an enterprise value of 320 million euros under the broader deal.

Porsche sold MHP as part of its strategy to focus on its core business, the TCS statement quoted the automaker’s CEO, Michael Leiters, as saying. The acquisition is expected to be completed within three to four months, subject to regulatory approvals.

The partnership will give TCS a stronger foothold in Europe, positioning the firm as a consulting partner for broader industry customers, the company said. BLOOMBERG