The partnership involves an initial investment of around ₹855 crore (approximately $97 million). The announcement was made by Mukesh Ambani at the company’s Annual General Meeting (AGM).
Brokerage Investec has a ‘Buy’ rating on RIL, with a price target of ₹1,890 per share.
The brokerage said that REIL represents a key milestone in Reliance’s technology-led strategy under its “AI Everywhere for Everyone” vision.The initiative is built on four pillars — Jio’s digital reach, Reliance’s green-powered data centres in Jamnagar, strategic global AI partnerships, and in-house AI development — positioning the group at the forefront of India’s AI-driven digital transformation.
Meanwhile, Morgan Stanley, which maintains an ‘Overweight’ rating on RIL with a price target of ₹3,155, estimates that the company could spend $12-15 billion on AI infrastructure to develop a 1GW data centre, underwriting roughly 25% of the capacity on its own.
The brokerage expects an 11% ROCE on the initial investment based on recent token pricing from large language model (LLM) providers and revenue-sharing assumptions.
While Reliance has not disclosed detailed financial projections, Morgan Stanley believes the new entity could command a valuation of at least 2x price-to-book (P/B), in line with global technology peers.
36 out of the 38 analysts that have coverage on the stock have a ‘Buy’ recommendation, with price targets going up to as high as ₹1,900.
