Tata Communications buys 51% stake in US AI firm Commotion for $25.5 million

Tata Communications (Netherlands), a wholly owned unit of Tata Communications Limited, has entered into an agreement to acquire a 51% stake in Commotion Inc., a U.S.-based artificial intelligence firm. The deal, structured through a combination of secondary share purchases and fresh capital infusion, gives Tata Communications a majority position on a fully diluted basis.

Commotion Inc., which also operates a subsidiary in India, delivers enterprise-grade solutions through its proprietary AI platform. The company specialises in Voice AI, omnichannel customer experience (CX) automation and autonomous digital agents. Its technology enables enterprises to automate complex workflows, personalise customer engagement at scale and drive innovation across both customer-facing and internal processes.

The acquisition will bolster Tata Communications’ customer interaction suite by adding advanced agentic AI and orchestration capabilities. With Commotion’s platform, Tata Communications aims to offer more intelligent, automated and personalised solutions to global enterprises.

The total deal value stands at $25.50 million (Rs 227 crore). Of this, $15.50 million will go toward purchasing shares from founders and existing investors, while $10 million will be infused as primary capital into Commotion.

Commotion Inc. reported consolidated revenue of $118,750 (approximately Rs 1.06 crore) in calendar year 2024.