OpenAI has begun preliminary discussions with Indian data center companies and Reliance Industries as it explores bringing parts of its USD 500 billion global artificial intelligence infrastructure project, Stargate, to India. The Sam Altman-led company has held talks with firms including Sify Technologies, Yotta Data Services, E2E Networks, and CtrlS Datacenters.

The conversations have reportedly centered on capacity, energy availability, and location, which are critical factors for large-scale AI computing. OpenAI has also been in parallel discussions with Reliance Industries for more than six months. Reliance is building what it claims will be the world's largest data center in Jamnagar, Gujarat, alongside a massive new energy complex.

The Stargate Project Details

Stargate is OpenAI's ambitious USD 500-billion joint venture, announced in January 2024, to build the next generation of AI infrastructure. Backed by SoftBank, Oracle, Microsoft, and other technology partners, it aims to create a hyperscale data center equipped with advanced chips and energy systems to support model training and inference at an unprecedented scale.

The project is designed to ensure long-term computing power for OpenAI and its partners, with investments spread over four years. Stargate facilities are expected to house hundreds of thousands of GPUs and will require an uninterrupted gigawatt-scale power supply. OpenAI aims to have a capacity of at least 1 gigawatt for this initiative.

OpenAI's Growing Presence in India

India is OpenAI's second-largest market by user base after the US, and could soon become its biggest. The company has registered a legal entity in India, plans to open an office in New Delhi later this year, and is ramping up local hiring. Altman has described India as “incredibly fast-growing” and stated that OpenAI is focusing on making its products more affordable and practical for local users. Sam Altman is expected to visit India this month, during which more details of OpenAI's expansion plans may become clearer.

Infrastructure Challenges and Requirements

However, challenges remain as India currently accounts for less than 1 percent of global AI computing capacity. Building facilities at the scale OpenAI requires would mean securing vast numbers of advanced chips, an uninterrupted power supply, and new cooling technologies. The infrastructure demands for the Stargate project are substantial, requiring gigawatt-scale capacity and sophisticated energy systems to support the massive computing requirements of advanced AI model training and inference operations.

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