Reliance Omits IPO Updates for Jio and Retail During AI-Centric Event

Reliance Industries, India's largest company by market capitalization, is embracing the AI revolution currently sweeping the tech industry. During the company’s 47th annual general meeting on Thursday, chairman Mukesh Ambani and other executives referenced AI nearly 30 times in just two hours, revealing their ambitious plans to integrate this transformative technology across various sectors, including telecommunications, retail, and energy.

The company announced plans to establish large-scale, AI-ready data centers in Jamnagar, located in Gujarat. These facilities will be powered by Reliance’s green energy resources, helping to minimize AI inferencing costs in India and potentially making AI applications more accessible. However, specific details regarding the feasibility and timeline of these initiatives were notably lacking.

Reliance’s telecom division, Jio, is actively developing a comprehensive AI suite called "Jio Brain" aimed at accelerating AI adoption within its operations and across other Reliance subsidiaries. The firm is also collaborating with Jio Institute to create an AI program designed to nurture AI talent in India.

Additionally, Reliance plans to provide Jio users with up to 100 GB of complimentary cloud storage through its upcoming Jio AI Cloud service, expected to launch around Diwali in October. During the presentation, the firm showcased several innovations, including JioPhoneCall AI, a service for call recording and transcription, as well as Jio TvOS, a new operating system for its set-top boxes featuring an AI voice assistant.

While India has trailed behind other nations in the AI race, the past year has witnessed a surge of activity from major conglomerates like Reliance and Tata Group, both of which have partnered with Nvidia, as well as from startups focused on developing AI applications and infrastructure.

Interestingly, the company did not provide any updates regarding the highly awaited IPOs of Jio and Reliance Retail, both of which are leaders in their respective sectors. “Five years ago, RIL's chairman indicated that the company would pursue IPOs for both Jio and retail within five years, and the market is eagerly anticipating an update,” noted analysts from Bank of America.

Ambani expressed optimism, stating that the company anticipates Jio and Retail will double their revenue and EBITDA within the next three to four years. According to brokerage firm Jefferies, Reliance could list Jio next year with a valuation exceeding $110 billion. In 2020, Jio secured approximately $20 billion from investors, including Meta, Google, Mubadala, ADIA, and KKR, valuing the telecom operator at $65 billion. Similarly, Reliance Retail raised around $7 billion in 2020 from external investors, with an additional $1.85 billion secured last year at a valuation of $100 billion.