Tata Comm buys AI firm Commotion

MUMBAI: Tata Communications (Tata Com) has acquired 51% of US-based AI solutions provider Commotion for Rs 227 crore (about $26 million) as the broader Tata Group doubles down on AI-enabled businesses.Last month, TCS announced an investment of Rs 9,180 crore to develop AI data centres. Commotion, a three-year-old startup, also has a subsidiary in India.Acquiring Commotion and integrating its capabilities into Tata Com will advance the latter’s journey to becoming an AI-first organisation, the BSE-listed company said.Tata Com has routed the Commotion share purchase through its wholly owned subsidiary in the Netherlands. Out of the total consideration, nearly $16 million has been used for purchase of Commotion stocks from founders and external investors, with the remaining $10 million going towards capital contribution in the US-based company.