This Company Is Bringing A Big AI Project To India, Its Name Is…, Talks On With Mukesh Ambani News24 –

OpenAI is in preliminary talks with several Indian data center companies, including Sify Technologies and Reliance Industries, to set up its much-hyped $500 billion (44 lakh crore) Stargate supercomputing project in India. The Indian government has urged the company to set up a significant part of this large project in the country and store and process the data of Indian users within the country.

The Stargate project of ChatGPT maker OpenAI, which is rapidly growing in the field of artificial intelligence, is considered an important step in this direction. This plan proposes an investment of more than Rs 44 lakh crore ($ 500 billion) in the next four years. SoftBank, OpenAI, Oracle, and MGX are the initial investors in this project, while Arm, Microsoft, Nvidia, Oracle, and OpenAI are among its major technical partners.

According to a report in The Economic Times, OpenAI is in talks with Indian data center companies such as Sify Technologies, Yotta Data Services, E2E Networks, and CtrlS Datacenters. Also, the company has been in discussions with Reliance Industries for the last six months. It is worth noting that Reliance is working towards building the world’s largest data center in Jamnagar, Gujarat, which can match OpenAI’s infrastructure goals.

According to sources in the know, these meetings have so far discussed important aspects such as the existing capacity of the data center, expansion possibilitie,s and uninterrupted power supply, which are essential for large-scale operation of AI computing. A data center official said that the talks have started, but no final decision has been made yet.

This initiative has come to the fore after the demand of the Indian government, in which OpenAI has been asked to invest a few billion dollars of the Stargate project in India. According to a government official, India has become an important and fast-growing market for OpenAI, from which the company has the potential of large-scale revenue. The official also said that OpenAI should start data processing in India like other global companies like Microsoft, Google, Meta and AWS, which will improve the quality of service and reduce latency.

At present, no official statement has been issued by OpenAI, Reliance Industries or other data center companies in this regard.

The Stargate project was announced by OpenAI in January as a joint venture, which aims to build next-generation AI infrastructure in the US. However, now the company’s global strategy points towards expanding this project to other countries. Recently, OpenAI CEO Sam Altman said that India has become OpenAI’s second largest market after the US and given its “rapid growth rate”, it can soon become the largest. He also said that the company is going to open its first office in New Delhi, local recruitment will be increased in India and services will be provided at affordable rates for Indian customers. Altman is going to visit India this month.

Although the pace of AI development in India is quite fast, the country still accounts for less than 1% of global AI computing capacity. Only 38,000 GPUs have been listed so far under the Government of India’s IndiaAI scheme. In contrast, OpenAI’s needs are far greater. According to market research firm Morgan Stanley, a 1 GW hyperscale AI data center, like the one contemplated by the Stargate project, would require about 1.35 lakh Nvidia B100 Blackwell chips and 1.3 GW of continuous power supply, and this will be needed in the next four to five years.

India’s total non-AI cloud data center capacity is currently less than 1 GW, but there are several efforts underway to expand this sector. According to reports, Google Cloud will invest $6 billion to build a 1 GW data center and power infrastructure in Andhra Pradesh. At the same time, Reliance has announced an investment of $10 billion (Rs 75,000 crore) to build the world’s largest new energy giga complex, including a 1 GW data center in Jamnagar.

As OpenAI expands its presence in India, the coming months could prove to be crucial for expanding the country’s AI infrastructure capabilities.

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