India, Nov. 20 -- Tata Consultancy Services Ltd. has raised $1 billion from TPG for its AI data centre business called HyperVault, as part of its endeavour to become the world's largest AI-led IT services company.

The TCS-TPG deal, according to the Mumbai-based company, will help drive stronger returns to shareholders, reduce capital outlay and create long-term value for the AI data centre platform.

The San Francisco-based private equity firm and India's largest IT services firm will invest in HyperVault a total of Rs.18,000 crore (about $2 billion) in a mix of equity and debt over the next few years, according to a statement on Thursday. While TCS is likely to retain a majority stake of 51% in the joint venture, TPG will invest up to R...