OpenAI has started negotiating for Stargate Data Centre with leading tech players in India.
OpenAI has advanced to preliminary discussions for setting up a large data centre in India. The AI tech giant sets its eyes on the project as a part of its highly ambitious Stargate AI infrastructure initiative. The company is under negotiation with local Indian companies like Sify Technologies, Yotta Data Services, E2E Networks, and CtrlS to construct a facility with a minimum of 1 GW of computing power. This is a notable push for OpenAI in the Asian region, likely to be pursued in the scheduled India visit by CEO Sam Altman soon and as a part of its overall global expansion strategy.
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The Stargate project, announced earlier this year, is a multi-billion-dollar initiative backed by OpenAI, SoftBank, and Oracle to establish super-scale AI data centres globally. The initiative aims to support the growing computational needs of AI models like ChatGPT and empower advanced applications in various sectors. The India data centres will be one of the largest in the country, potentially positioning India as a key hub in OpenAI’s global AI infrastructure network.
OpenAI’s CEO Sam Altman is expected to announce the India project during his upcoming visit to the country. The company has already registered as a legal entity in India and is building a local team. This expansion complements OpenAI’s strategy of partnering with national governments to anchor AI data centres locally, ensuring data sovereignty and customised AI solutions tailored to regional needs under its “OpenAI for Countries” initiative.
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India's fast-growing tech ecosystem, talent pool, and renewable power base make it a great place to locate this project. The new centre is set to accommodate tens of thousands of GPUs and specialised AI chips, accelerating AI training and deployment. It will also supplement work under the IndiaAI mission, aimed at building home-grown AI capabilities and supporting digital innovation at the national level.
The investment by OpenAI in India is amidst increasing trade tensions between India and the United States, which emphasises the strategic significance of AI infrastructure in international technology competition. The international expansion by the company is also a response to its acknowledgment of India as its second-largest volume user market.
This data centre project will not only boost India’s AI infrastructure but also create job opportunities and technological advancements, strengthening India’s position in the global AI race. OpenAI’s Stargate initiative represents one of the largest and most ambitious infrastructure projects for artificial intelligence, with a projected investment of up to $500 billion worldwide. The proposed India facility will be a crucial part of this vision, fuelling the next wave of AI breakthroughs in Asia and beyond.
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Summing up, OpenAI’s planned data centre in India, through tie-ups with local partners, displays the company’s commitment to expanding AI capabilities and infrastructure globally, making India a crucial player in the evolving AI landscape in the current evolving scenario.
