OpenAI is holding preliminary discussions with Reliance Industries Limited and major data centre providers including Sify Technologies, Yotta Data Services, E2E Cloud Networks, and CtrlS Datacenters to bring its ambitious $500 billion Stargate supercomputing project to India. The move comes in response to the Indian government’s request that OpenAI invest “at least a few billions” in the country and ensure local storage of Indian user data.
The talks, which have been ongoing for more than six months, align with Reliance’s own plan to build the world’s largest data centre in Jamnagar, Gujarat — potentially making it a cornerstone of OpenAI’s India strategy. According to an official familiar with the matter, “India is becoming a key market for OpenAI and also has potential to become a large revenue generator,” adding that the company has been urged to process and store data locally, similar to Microsoft, Google, Meta, and Amazon Web Services (AWS).
OpenAI CEO Sam Altman has repeatedly highlighted India’s importance to the company’s global ambitions. He recently stated, “We are especially focused on bringing products to India, working with local partners to make AI work great for India, (making) it more affordable for people across the country.” In line with this vision, OpenAI is opening its first India office in New Delhi and ramping up hiring for key local leadership roles.
For India, which currently has less than 1% of the world’s AI compute capacity, Stargate could be a game-changer — boosting the nation’s ability to support large-scale AI research, innovation, and enterprise adoption. However, significant hurdles remain, including securing uninterrupted power, advanced cooling systems, and a reliable supply of GPUs. As one executive noted, “The question is not whether they will go ahead with a global or local partner, but actually who will be able to provide them with an uninterrupted energy supply.”
If finalized, the project could place India on the global AI infrastructure map, providing local enterprises and researchers with access to world-class compute resources while positioning the country as a major hub for AI development.
