OpenAI Weighs Building One of India’s Largest AI Data Centres
OpenAI has reportedly been planning to build a new and massive data center in India. If things get aligned, the project is going to be one of the largest investments from the company in Asia under the Stargate initiative from the US government.
According to reports from Bloomberg, the makers of ChatGPT have been in talks with local partners for building a facility with at least a gigawatt of capacity. If executed, the infrastructure would rank among the biggest ones in India, where firms like Microsoft, Google, and businessman Mukesh Ambani have already invested heavily to support AI growth and cloud.
However, the timelines are still not clear, and the location is yet to be revealed. Many sources state that this information might be revealed in the upcoming trip of CEO Sam Altman to India.
The new expansion plan of OpenAI is getting highlighted as the trade friction between New Delhi and Washington has recently caught the eye. US President Donald Trump has imposed a 50% tariff on Indian goods while signaling it as a response to India’s trade barriers and purchases of Russian oil. The move has definitely impacted the US diplomacy of strengthening ties with South Asian countries. Despite the rumors, OpenAI has not made any comments on whether these tensions are going to impact their plan to invest in India.
Investing In AI Infrastructure Globally
OpenAI is working on an aggressive approach of pushing its infrastructure in the USA as well as overseas. The signature $500 billion Stargate project in the USA is being developed with the financial support of Oracle and SoftBank. OpenAI has also increased its US capacity commitment by 4.5 gigawatts, which is equal to the energy demand of millions of households. Trump has also publicly appreciated the project, referring to it as a win for US technology.
OpenAI has also launched an “OpenAI for Countries” programme that focuses on building AI infrastructure around the globe. The plan claims to be a way for the USA and partners to navigate AI development in a way that can control the growing influence of China in the landscape.
According to the reports, more than 30 countries have already shown interest in joining the alliance, while OpenAI is pursuing around 10 partnerships to date. The confirmed projects include a gigawatt complex in Abu Dhabi and a facility of 520 megawatt capacity in Norway. OpenAI is planning to use 1 gigawatt of computing power for itself, while the rest will be available for customers to use.
The Rise of Security Concerns
The venture in Abu Dhabi has already triggered a debate in Washington. While many official finds the project to be a good approach to counter China’s global AI footprints, others are more concerned about security risks associated with the shipment of thousands of Nvidia chips to countries that have historic links to Beijing.
The USA has required approval for exporting AI chips to the UAE since 2023. However, India is not subject to these restrictions. The Trump government has recently dropped a plan related to AI chip export controls, which puts India in a stronger position to get computing and technological investments.
What Makes India the Prime Location for OpenAI’s AI Strategy?
India is more than “just a market to explore” for OpenAI. The data centre established in the country would allow the firm to train and deploy the AI models locally without needing to send users’ data overseas. At the same time, the planning also aligns well with New Delhi’s $1.2 billion IndiaAI Mission that aims at building small and large language models designed according to Indian contexts and languages. OpenAI has also pledged support for the initiatives in India.
Moreover, India stands as the second largest market from the users’ POV for OpenAI. So, the company plans to open an office in New Delhi, encourage local hiring, strengthen its presence, and launch a $5 monthly subscription tailored specifically for local users. The move undoubtedly signals that India is the first preference of OpenAI for all its strategies.
If the plan goes well and is executed, it will be one of the biggest ambitious steps of OpenAI in its global buildout.
