Reliance Industries, the largest company in India by market capitalization, is diving headfirst into the AI frenzy that has taken over the tech world. During the company’s 47th annual general meeting, Chairman Mukesh Ambani and other executives highlighted their plans to integrate artificial intelligence into various aspects of Reliance’s businesses, including telecommunications, retail, and energy. Mentioned nearly three-dozen times in just two hours, AI seems to be a focal point for the conglomerate’s future growth.
One of the key announcements made by Reliance was the establishment of large-scale, AI-ready data centers in Jamnagar, Gujarat. These data centers will be powered by the company’s green energy resources, signaling a commitment to sustainability alongside technological advancement. Ambani suggested that these facilities could potentially lower AI inferencing costs in India, making AI applications more accessible and affordable for the masses. However, the details surrounding the feasibility and timeline of these ambitious projects remain unclear.
Reliance’s telecom arm, Jio, is spearheading the AI revolution within the company through its “Jio Brain” AI suite. This comprehensive suite aims to accelerate AI adoption not only within Jio but also across other Reliance subsidiaries. Additionally, a partnership with Jio Institute has been formed to develop a program focused on nurturing AI talent in India. Jio has also announced plans to provide users with up to 100 GB of free cloud storage through its Jio AI-Cloud service, set to launch later this year around Diwali.
Innovation Showcase
During the presentation, Reliance showcased innovations such as JioPhonecall AI, a call recording and transcription service, as well as Jio TvOS, an AI-powered operating system for set-top boxes featuring a voice assistant. These developments highlight the company’s commitment to integrating AI into everyday consumer experiences and services. As India plays catch up in the global AI race, initiatives like these from Reliance signal a significant push towards technological advancement and innovation.
Despite the buzz surrounding Reliance’s AI initiatives, the company remains tight-lipped about the much-anticipated IPOs of Jio and Reliance Retail. Analysts have been eagerly awaiting updates on these potential IPOs, especially given Reliance’s dominance in the telecom and retail sectors in India. Ambani expressed confidence in the growth potential of both Jio and Retail, with expectations of doubling revenue and EBITDA in the next few years. Speculation from brokerage firms like Jefferies suggests that Jio could potentially list next year with a valuation exceeding $110 billion.
In 2020, Jio raised a significant amount of funding from various investors, including Meta, Google, Mubadala, ADIA, and KKR, totaling around $20 billion. This funding round valued Jio at $65 billion, showcasing the confidence that investors have in the telecom operator. Similarly, Reliance Retail raised $7 billion in 2020 and secured $1.85 billion last year at a valuation of $100 billion. These investments underscore the potential and valuation growth of Reliance’s diverse business portfolio.
Reliance Industries’ strategic embrace of AI and technology signals a new chapter in the company’s trajectory. With ambitious plans, partnerships, and innovations on the horizon, Reliance is positioning itself at the forefront of India’s technological revolution. As AI continues to shape industries and consumer experiences worldwide, Reliance’s bold foray into this domain underscores its commitment to innovation and growth in the digital age.