Reliance – Meta Announce ₹855 Crore AI Partnership in India

Reliance Meta Partnership: To develop, market, and distribute enterprise artificial intelligence (AI) services in India, Reliance Industries Limited (RIL) has announced the formation of a new joint venture company, Reliance Enterprise Intelligence Limited (REIL), in collaboration with Facebook Overseas Inc., a wholly-owned subsidiary of Meta Platforms, Inc.

Reliance Intelligence has made an initial subscription of ₹2 crore for 2 million equity shares, each worth ₹10. The new business, REIL, will function as a fully-owned subsidiary of Reliance Intelligence, which, in accordance with a revised joint venture agreement, would eventually become the joint venture firm with Facebook.

In accordance with the revised and restated joint venture agreement (“JV Agreement”) with Facebook Overseas, Inc. (“Facebook”), a wholly-owned subsidiary of Meta Platforms, Inc. (“Meta”), REIL, a wholly-owned subsidiary of Reliance Intelligence that was incorporated in India, would become the joint venture business. The exchange filing stated that, among other things, REIL will be involved in creating, promoting, and delivering enterprise AI services.

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Joint Investment of ₹855 Crore:

Under the joint venture deal, Reliance Intelligence is going to own 70% of REIL, and Facebook will be holding the other 30%. For this AI partnership, both companies have agreed on the initial investment of about ₹855 crore. According to the exchange filing, it is said that, “The transaction does not fall within related party transactions and none of the company’s promoter/ promoter group/ group companies have any interest in the above transaction”. It is clearly evident that Reliance is having more interest in building next-generation digital tech, which can also emphasize on enterprise level.

No Regulatory Approvals:

Reliance Industries explained that none of its promoters or group firms have any financial stake in the initiative, and that the deal does not meet the requirements for a related party transaction. The business added that forming REIL didn’t involve any legal or regulatory clearances.