Discussion underway between OpenAI and Reliance, headed by Ambani, plus additional parties, for potential implementation of $500 billion Stargate project in India, as indicated by recent reports
In the rapidly evolving world of artificial intelligence (AI), OpenAI, a leading AI research and deployment company, is making significant strides in India. The country, currently accounting for less than 1% of the global AI compute capacity, is seen as a key market for OpenAI, with potential to become a large revenue generator.
OpenAI has taken steps to cater to the Indian market by launching lower-priced subscription offerings tailored to India's needs. This move is a testament to the company's commitment to making AI technology accessible to a wider audience in the country.
The company's interest in India extends beyond subscription offerings. OpenAI has been in discussions with Reliance, which is planning to build one of the world's largest data centers in Jamnagar, Gujarat. The potential partnership could see OpenAI setting up a gigawatt-scale data center in India, a move that would require nearly 135,000 Nvidia's advanced B100 Blackwell chips and a constant 1.3 gigawatt power supply.
The Indian government's push for local processing of AI data is a driving force behind this potential partnership. By reducing latency, improving user experience, and aligning with competitors such as Microsoft, Google, Meta, and Amazon Web Services, which already operate or are expanding large-scale facilities in India, OpenAI stands to benefit from the government's support.
The Stargate project, a joint venture backed by SoftBank, OpenAI, Oracle, and MGX, with Masayoshi Son as chairman, could provide a critical anchor for India's underdeveloped compute ecosystem. However, the specific Indian companies OpenAI has contacted for evaluating installed capacities, power supply, and site distribution related to its Stargate project remain undisclosed.
Meanwhile, other tech giants are also investing in India. Google Cloud is planning to invest $6 billion in a 1 GW facility in Andhra Pradesh. Sam Altman, OpenAI's CEO, has identified India as the company's second-largest market after the United States and 'incredibly fast growing'.
OpenAI is taking concrete steps to establish a presence in India. The company has set up an office in New Delhi and is hiring for sales leadership. With the launch of lower-priced subscription offerings and plans for a potential gigawatt-scale data center, OpenAI is positioning itself as a significant player in India's burgeoning AI market.
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