Tata Consultancy Services Ltd (TCS) will acquire Porsche AG’s Germany-based management and IT consulting subsidiary, MHP, for approximately €320 million ($373.25 million), while securing a five-year, €1.25 billion ($1.46 billion) artificial-intelligence contract with the sports-car maker. TCS will establish a specialized hub to oversee AI deployment at Porsche, with the agreement taking effect after the acquisition is completed. MHP employs around 4,500 people. The transaction strengthens TCS’s automotive technology capabilities and German market presence as it seeks to industrialize AI at scale. It also supports Porsche’s Sportwagenschmiede 35 strategy to streamline operations and improve profitability and cash flow. The deal comes as TCS reports annualized AI revenue of $2.6 billion in the June quarter, while Indian IT stocks have underperformed amid concerns that AI could pressure traditional services demand.