Reliance Industries shares rally 2%; will the stock hit record high soon? Morgan Stanley says AI to reshape its equity story

Reliance will hold 70% of Reliance Enterprise Intelligence Ltd., the company stated in the filing.

Reliance Intelligence, a wholly owned subsidiary of Reliance Industries Ltd, will jointly invest an initial ₹855 crore in the venture with Facebook.

In its regulatory filing, the company stated that Reliance Intelligence Limited (“Reliance Intelligence”), a wholly owned subsidiary, incorporated Reliance Enterprise Intelligence Limited (“REIL”) on October 24, 2025.

"REIL, incorporated in India as a wholly-owned subsidiary of Reliance Intelligence, will become the joint venture company as per the amended and restated joint venture agreement with Facebook Overseas, Inc. (Facebook), a wholly-owned subsidiary of Meta Platforms, Inc.," it said.

REIL will develop, market, and distribute enterprise AI services.

"In accordance with the JV Agreement, Reliance Intelligence will hold 70%, and Facebook will hold the balance of 30% in REIL," it said.

"Reliance Intelligence and Facebook have jointly committed an initial investment of ₹855 crore."

No governmental or regulatory approvals were required for the incorporation of REIL.

What Morgan Stanley says about RIL's AI infrastructure

In its report, Morgan Stanley said Reliance Industries Ltd may spend about $12-15 billion over the next few years on AI infrastructure that could include a giant 1 GW data centre.

Ambani had at the company's annual shareholder meeting in August announced a major push into AI through a new subsidiary and strategic partnerships.

A new wholly-owned subsidiary, Reliance Intelligence, will spearhead the conglomerate's AI initiatives that will be centred around four pillars -- Infrastructure (building gigawatt-scale, AI-ready data centres), Partnerships (collaborating with global tech leaders to bring cutting-edge AI solutions to India), Services (developing AI-powered services tailored for Indian consumers, small businesses, and enterprises in sectors like education, healthcare, and agriculture), and Talent (investing in upskilling and nurturing India's AI workforce).

Reliance has reinvented itself every decade, and AI is set to reshape its equity story, Morgan Stanley said in the report.

Gen AI deployment enables large-scale capital deployment while unlocking value through synergies across energy, digital, consumer, and media verticals.

"We estimate that Reliance will spend approximately $12-15 billion on AI infrastructure to develop a 1 GW data centre, underwriting about 25% of the capacity itself (roughly $7 billion for data centre infrastructure and $5 billion for the 250 MW of chips the company will deploy directly)," it said.

It is expected that the remaining capacity will be leased to hyperscalers and LLM providers as 'Data Centre as a Service'.

The first phase of the data centre is already underway in Jamnagar, Gujarat.

"We believe Reliance can utilise its initial 100 MW of Gen AI data centre capacity – which it has indicated will scale up over two years – to address inference demand from enterprises as part of its enterprise stack offering and Sovereign AI initiatives," it said. "This effort will leverage its joint venture with Meta on small language models, as well as partnerships with Google and Azure."

Apart from Meta, RIL is also collaborating with Google to establish a dedicated cloud region in Jamnagar, combining Reliance's infrastructure capabilities with Google's AI and cloud technologies.

Morgan Stanley saw an ROCE of about 11% on the initial AI investments. For 'Datacenter as a Service', it estimated annual revenues of around $1.5-1.6 million per MW.

"Given data centres are significant energy consumers, Reliance can also underwrite more than 20 GW of internal power demand, supporting 100 GW of its solar panel capacity and 30-40 GWh of its own battery capacity," it added.

RIL share price trend

Shares of the company have gained around 19% so far in 2025 (YTD) and nearly 6% in 30 days. The stock's all-time high level stands at ₹1,608.80 on the NSE, which was touched on July 8, 2024.