OpenAI, the company behind ChatGPT, has started initial discussions with Indian data centre operators and Reliance Industries as part of its plan to bring sections of its $500 billion global AI infrastructure initiative, Stargate, to India.
Talks have reportedly been held with Sify Technologies, Yotta Data Services, E2E Networks and CtrlS Datacenters, focusing on crucial requirements such as capacity, energy availability and location. At the same time, OpenAI has been in talks with Reliance Industries for more than six months. Reliance is building a massive data centre in Jamnagar, Gujarat, alongside a large-scale energy complex, which could be key to meeting OpenAI’s target of at least 1 gigawatt capacity.
What is Stargate?
Stargate is OpenAI’s $500 billion joint venture launched in January 2024 with backing from SoftBank, Oracle, Microsoft and other partners. The project aims to build hyperscale data centres equipped with advanced chips and high-capacity energy systems to handle AI model training and inference on a global scale. The multi-year investment will ensure long-term computing power, with facilities designed to host hundreds of thousands of GPUs and run on gigawatt-scale uninterrupted power.
OpenAI’s India focus
India is OpenAI’s second-largest market by users after the United States and is expected to soon take the top spot. The company has already set up a legal entity in India, plans to open an office in New Delhi later this year and is expanding local hiring.
Sam Altman, OpenAI’s CEO, has described India as “incredibly fast growing” and highlighted efforts to make its AI products more affordable and effective for local users.
However, India contributes less than 1 per cent of global AI computing capacity, posing challenges for scaling at the level OpenAI requires. Building Stargate facilities in India would demand vast numbers of advanced chips, consistent gigawatt-level power and next-generation cooling systems.
Altman is expected to visit India this month, where further details about OpenAI’s expansion and its Stargate project in the country may be revealed.
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