• OpenAI in talks with Indian data centre players including Reliance, Sify, Yotta, E2E, and CtrlS to expand its $500 Billion Stargate AI infrastructure project.
• Reliance’s Jamnagar mega data centre and energy complex seen as a strong fit for OpenAI’s gigawatt-scale hyperscale computing needs.
• India emerges as a key market, with OpenAI setting up a local entity, planning a New Delhi office, and CEO Sam Altman expected to visit this month to push expansion plans.

OpenAI, the maker of ChatGPT, has reportedly started talks with a number of Indian data centre providers and Reliance Industries as part of its efforts to expand the ambitious $500 billion worldwide AI infrastructure venture called Stargate. As per the government has spoken with organizations such as Sify Technologies, Yotta Data Services, E2E Networks, and CtrlS Datacenters, with talks mainly focusing on concerns of capacity, power availability, and geography factors deemed vital for massive AI computing centers.

In parallel, OpenAI has been engaged in talks with Reliance Industries for more than six months. Reliance is currently constructing what it claims will be the world’s largest data centre in Jamnagar, Gujarat, alongside a massive energy complex. This aligns closely with OpenAI’s requirement of building hyperscale infrastructure capable of at least one gigawatt capacity to support the training and deployment of advanced AI models.

Stargate, announced in January 2024, is planned as a $500-billion joint venture backed by leading technology giants like SoftBank, Oracle, Microsoft, and more. The project will span four years with the creation of a hyperscale data centre network with cutting-edge chips and high-end energy systems, which will provide long-term security of computing power for OpenAI and its associates. These facilities are expected to host hundreds of thousands of GPUs while requiring uninterrupted gigawatt-scale power, making energy partnerships a vital element of the initiative.

Also Read: OpenAI Eyes India as Its Next Biggest Market with GPT-5 Launch and Education Drive

India’s role in OpenAI’s expansion strategy is becoming increasingly significant. The country is already the second-largest market for ChatGPT after the United States, with the potential to soon overtake it. OpenAI has also registered a legal entity in India, will open an office in New Delhi sometime later this year, and is aggressively hiring native talent. CEO Sam Altman has labeled India as 'incredibly fast growing' and emphasized the company's focus on bringing its products cheaper and more effective to local consumers.

However, challenges remain in bringing infrastructure of this scale to India, given that the country currently accounts for less than one percent of global AI computing capacity. Meeting the demands of a project like Stargate will require not only vast chip supplies but also reliable power generation and next-generation cooling technologies. Altman is expected to visit India this month, where more clarity on OpenAI’s local expansion plans may be shared.

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