The move rattled investor sentiment across Indian IT services companies as the new venture directly targets large-scale AI deployment, workflow redesign and enterprise transformation - areas traditionally dominated by global IT consulting and outsourcing firms.

According to OpenAI, the new company will embed Forward Deployed Engineers inside client organisations to identify AI opportunities, redesign workflows and deploy AI systems at scale.

The announcement triggered a broad selloff in Indian IT stocks. The Nifty IT index slumped 3.59% to 28,276.65.

Persistent Systems dropped 4.95%, while Tata Consultancy Services fell 4.09%. LTIMindtree declined 3.76% and Infosys slipped 3.70%.

Tech Mahindra lost 3.53%, while HCL Technologies fell 3.29%. Wipro declined 2.94%, Coforge dropped 2.60%, and Mphasis slipped 2.23%. Oracle Financial Services Software was down 0.82%.

OpenAI said the Deployment Company will work closely with enterprises to integrate AI into core operations and business processes. The company has also agreed to acquire AI consulting firm Tomoro, bringing around 150 deployment engineers into the new business from day one.

The venture is backed by 19 investment firms, consultancies and system integrators, including Bain & Company, Capgemini and McKinsey & Company.

Market participants viewed the move as a potential long-term disruption for traditional IT services firms, especially in high-margin consulting and digital transformation businesses, as AI companies increasingly move beyond software tools into enterprise execution and deployment services.

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