Reliance, led by Ambani, in negotiations with OpenAI and other entities to potentialize the $500 billion Stargate venture in India according to reports.
In a significant move for India's burgeoning AI sector, OpenAI, the leading AI research company, has expressed interest in investing a substantial amount from its $500 billion Stargate project corpus in India. This decision comes as OpenAI looks to localise data generated by Indian users and strengthen India's underdeveloped compute ecosystem.
The Stargate project is a joint venture backed by SoftBank, OpenAI, Oracle, and MGX, with Masayoshi Son as chairman. The project aims to create a global supercomputing initiative that will drive AI innovation and digital infrastructure.
India's current AI compute capacity accounts for less than 1%, making it an attractive market for such a large-scale investment. OpenAI's entry could provide a critical anchor for the country's underdeveloped compute ecosystem.
To accommodate this investment, OpenAI is considering setting up a 1 GW hyperscale data center, which would require nearly 135,000 of Nvidia's advanced B100 Blackwell chips. This is a significant undertaking, given that India's combined data center capacity for non-AI cloud workloads is under 1 GW.
OpenAI has approached several Indian data center operators, including Sify Technologies, Yotta Data Services, E2E Networks, and CtrlS Datacenters, to evaluate their installed capacities, power availability, and location spread.
In addition to its data center plans, OpenAI is also expanding its presence in India, with the establishment of an office in New Delhi and the hiring for sales leadership.
India is seen as a key market and potential large revenue generator for OpenAI. Sam Altman, OpenAI's CEO, has identified India as the company's second-largest market after the United States and 'incredibly fast growing'.
Reliance Industries, one of India's largest conglomerates, has also shown interest in the Stargate project. They have announced plans for a data center of similar capacity at Jamnagar and have been in discussions with OpenAI for more than six months.
OpenAI and Reliance are in talks for a potential collaboration, aiming to boost AI innovation and digital infrastructure in India. Such a partnership could see Reliance acting as the data center operator partner to bring the Stargate AI supercomputer initiative to India.
Local processing in India is expected to reduce latency, improve user experience, and align OpenAI with competitors such as Microsoft, Google, Meta, and Amazon Web Services, who have already made significant investments in India's AI sector.
OpenAI has already taken steps to cater to the Indian market, launching lower-priced subscription offerings tailored to India and enabling local data residency in May.
The Stargate project's four-year plan envisions vast new AI infrastructure in the United States and beyond. With its investment in India, OpenAI is positioning itself at the forefront of India's AI revolution.
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