Discussion underway between OpenAI and Reliance, led by Ambani, alongside other entities, to potentially implement the $500 billion Stargate project within Indian boundaries, as per latest reports.
In a significant move for the AI industry, OpenAI, the leading artificial intelligence research company, is reportedly in discussions with Indian companies to bring its ambitious Stargate project to the subcontinent.
The Stargate project, a joint venture backed by SoftBank, OpenAI, Oracle, and MGX, with Masayoshi Son as chairman, aims to create vast new AI infrastructure not only in the United States but globally. One of the potential locations for this infrastructure is Jamnagar, Gujarat, where Reliance Industries is planning to build one of the world's largest data centers.
Reliance Industries, a key player in India's industrial sector, has been engaged in discussions with OpenAI for more than six months regarding the potential data center project. The Indian conglomerate has also announced plans for a similar capacity at Jamnagar.
India's current combined data center capacity for non-AI cloud workloads is under 1 GW. However, with the entry of OpenAI's Stargate project, this could significantly change. The project is expected to involve a 1 GW facility, demanding nearly 135,000 of Nvidia's advanced B100 Blackwell chips.
The Indian government believes that local processing will reduce latency, improve user experience, and align OpenAI with competitors such as Microsoft, Google, Meta, and Amazon Web Services, which already operate or are expanding large-scale facilities in the country.
Besides Reliance Industries, other Indian companies involved in negotiations for the Stargate Initiative data center project include Sify Technologies, UrsaCloud, Yotta Data Services, E2E Networks, and CtrlS Datacenters. OpenAI has approached these companies to evaluate their installed capacities, power availability, and location spread.
OpenAI has also made moves to establish a stronger presence in India. The company has launched lower-priced subscription offerings tailored to the Indian market and is setting up an office in New Delhi, with plans to hire for sales leadership.
India's AI compute capacity currently accounts for less than 1%. The Stargate project could provide a critical anchor for the country's underdeveloped compute ecosystem, potentially boosting India's AI capabilities and positioning it as a significant player in the global AI landscape.
Moreover, OpenAI has already taken steps to cater to the Indian market. In May, the company enabled local data residency in India, allowing user prompts and files to be stored within the country, although model processing still occurs abroad.
Google Cloud is also making strides in India's data center sector, with plans to invest $6 billion in a 1 GW facility in Andhra Pradesh. The development of these large-scale data centers could mark a new era for India's AI infrastructure, with potential benefits for businesses, researchers, and users alike.
As the Stargate project moves forward, it remains to be seen how it will shape India's AI landscape and what opportunities it will bring for the country's tech industry. However, one thing is certain: the entry of OpenAI's Stargate project into India marks an exciting step forward for the subcontinent's AI sector.
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