OpenAI Explores Stargate AI Project Expansion to India

OpenAI is in preliminary discussions with Indian data center companies and Reliance Industries Ltd to explore the possibility of bringing its $500 billion Stargate AI infrastructure project to India. The talks involve firms such as Sify Technologies and Yotta Data Services, focusing on critical factors like capacity, energy availability, and location.

The Stargate project, announced in January 2024, aims to build next-generation AI infrastructure with hyperscale data centers equipped with advanced chips and energy systems. This initiative is backed by major technology partners, including SoftBank, Oracle, and Microsoft, and is designed to ensure long-term computing power for OpenAI and its partners.

India, being OpenAI's second-largest market by user base, is a strategic location for this expansion. The company has registered a legal entity in India and plans to open an office in New Delhi later this year. However, challenges such as securing advanced chips and ensuring an uninterrupted power supply remain as India currently accounts for less than 1% of global AI computing capacity.

Reliance Industries, which is building what it claims will be the world's largest data center in Jamnagar, Gujarat, has been in discussions with OpenAI for over six months. The Indian government has also expressed interest in the project, urging OpenAI to invest significantly in India and store local data within the country.