OpenAI Deepens India Commitment With New Data Center Plan

ChatGPT creator OpenAI is reportedly setting its sights on India for a significant infrastructure expansion, planning to build a massive new data center in one of its most rapidly expanding markets. This move signals a deeper commitment to the region as AI adoption continues to surge across the country.

A Gigawatt-Scale AI Hub

According to a report from Bloomberg, the proposed facility is set to have a capacity of at least 1 gigawatt, which would make it one of the largest and most powerful data centers in India. While the specific location and construction timeline are still under consideration, OpenAI's co-founder and CEO, Sam Altman, is expected to reveal more details about the initiative during his planned visit to India in September. This development follows Altman's earlier announcement that OpenAI will be establishing its first physical office in India later this year.

The creation of such a large-scale data center would serve multiple strategic purposes. It would enable OpenAI to offer more customized and responsive AI chatbots tailored to Indian users and crucially address growing concerns about data sovereignty by processing user information within the country's borders.

Connection to the Stargate AI Initiative

The ambitious project is reportedly linked to Stargate, a large-scale private-sector AI infrastructure effort. This initiative, supported by major players like SoftBank, OpenAI, and Oracle, carries potential investment commitments of up to $500 billion. The Stargate project was first mentioned by former US President Donald Trump in January, highlighting its goal to construct extensive compute facilities to power the next generation of artificial intelligence.

Deepening Roots in a Key Market

OpenAI's infrastructure plans build on an already strong foundation in India. The company has registered a local entity and is preparing to open its first office in the Delhi NCR region. Sam Altman recently highlighted India's importance, describing it as OpenAI's second-largest market after the United States. He noted that ChatGPT usage in the country has quadrupled over the past year and even suggested that India could one day surpass the US in AI adoption.

This expansion is complemented by a series of India-focused programs. Last week, OpenAI launched the Learning Accelerator, a program offering 500,000 free ChatGPT licenses to students and teachers for six months, in partnership with the Ministry of Education and other educational bodies. Furthermore, OpenAI introduced ChatGPT Go, an affordable, India-only subscription plan priced at Rs 399 per month with UPI payment options.

Navigating a Competitive AI Landscape

OpenAI's intensified push into India comes as global competitors are also ramping up their efforts. Google recently made its Gemini AI Pro model free for students over 18 in the country. Meanwhile, AI search engine Perplexity has partnered with telecom giant Airtel to provide premium access to its vast customer base. This new data center project underscores OpenAI's strategy to solidify its leadership position in India's dynamic and competitive AI market.