OpenAI in Talks with Indian Data Firms for a $500 Billion Stargate Project

OpenAI, the creator of ChatGPT, has started preliminary talks with several Indian data centre companies. The Economic Times reported that firms such as Sify Technologies, Yotta Data Services, E2E Networks, and CtrlS Datacenters are part of the discussions. The focus has been on capacity, energy availability, and suitable locations for setting up operations.

Reliance Industries in Focus

Alongside these talks, OpenAI has been in discussions with Reliance Industries for more than six months, as per news reports. Reliance is building a large data centre in Jamnagar, Gujarat, which it says will be the biggest in the world. The facility is integrated with a new energy complex, which could align with OpenAI’s requirement of at least 1 gigawatt of computing capacity.

About the Stargate Project

Stargate is a $500 billion joint venture announced in January 2024. Backed by SoftBank, Oracle, Microsoft, and other technology partners, it is aimed at creating hyperscale data centres across the globe. These facilities will host hundreds of thousands of GPUs, supported by advanced chips and uninterrupted gigawatt-scale power. Investments are planned to be spread across four years.

India’s Position in OpenAI’s Plans

India is OpenAI’s second-largest user base after the United States. The company has registered a legal entity in the country and is preparing to open an office in New Delhi later this year. Hiring has also begun to support operations. CEO Sam Altman has said the company is working on making its products more affordable and effective for Indian users.

Read more: OpenAI Plans for Expansion in India with Major 1 GW Data Centre!

Current Challenges

India currently contributes less than 1% to global AI computing capacity. Building infrastructure at the required scale would mean securing advanced chips, a consistent power supply, and new cooling systems, as per news reports.

Conclusion

With talks involving Reliance and several local data centre providers, India may host part of OpenAI’s Stargate project. More details could be shared during Altman’s visit later this month.

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