Porsche signs $1.5b AI deal with India’s TCS

Porsche AG said on August 25 that it signed a five-year, 1.25 billion euro (US$1.5 billion) deal with Tata Consultancy Services Ltd. (TCS), an Indian software services company.

The deal will deploy AI across the automaker’s engineering, manufacturing, operations, and customer experience functions.

Under the agreement, TCS will acquire Porsche’s Germany-based consulting unit, MHP Management- und IT-Beratung GmbH, in a deal that values the unit at 320 million euros (US$374 million).

In a TCS statement, Porsche chief executive Michael Leiters said the sale supports the automaker’s strategy to focus on its core business.

TCS said the MHP acquisition is expected to close within three to four months, subject to regulatory approvals.