OpenAI in Talks with Indian Data Firms to Bring $500 Billion Stargate Project to India

OpenAI is in talks with Indian data center firms to bring its $500 billion Stargate AI infrastructure project to India, which aims to create gigawatt-scale capacity for model training and inference. The project, backed by SoftBank, Oracle, and Microsoft, requires an uninterrupted power supply and hundreds of thousands of GPUs. OpenAI has also been in discussions with Reliance Industries for over six months. India is OpenAI's second-largest market after the US and could soon become its biggest.

OpenAI, the developer of ChatGPT, is in preliminary discussions with Indian data center firms to bring its $500 billion Stargate AI infrastructure project to India. The project aims to create gigawatt-scale capacity for model training and inference, requiring an uninterrupted power supply and hundreds of thousands of GPUs [1].

OpenAI has been in talks with Indian data center companies, including Sify Technologies, Yotta Data Services, E2E Networks, and CtrlS Datacenters, focusing on capacity, energy availability, and location [1]. The company has also been in parallel discussions with Reliance Industries for over six months [1].

The Stargate project is an ambitious joint venture announced in January 2024, aiming to build the next generation of AI infrastructure. Backed by SoftBank, Oracle, Microsoft, and other technology partners, it seeks to create hyperscale data centers equipped with advanced chips and energy systems [1].

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 [1]. However, building facilities at the scale OpenAI requires would mean securing vast numbers of advanced chips, an uninterrupted power supply, and new cooling technologies [1].

Sam Altman, CEO of OpenAI, is expected to visit India this month, during which more details of OpenAI's expansion plans may become clearer [1]. The San Francisco–based AI company has already embarked on an aggressive infrastructure buildout in the United States, working with SoftBank and Oracle on its Stargate initiative, which aims to deliver 4.5 gigawatts of capacity [2].

The Stargate initiative has an estimated long-term cost of $500 billion; $100 billion has already been earmarked for its early phases. The project could become the largest AI infrastructure buildout to date, spanning multiple locations and phases [2].

References:
[1] https://www.business-standard.com/companies/news/openai-stargate-project-india-reliance-industries-sify-yotta-datacentres-125090900156_1.html
[2] https://www.rcrwireless.com/20250902/ai-infrastructure/openai-india