Stargate in India: A $500 Billion AI Opportunity

OpenAI’s discussions with Reliance Industries and leading Indian data centre firms signal a turning point for India’s AI ecosystem. 
 
If realized, the $500 billion Stargate supercomputing project could redefine India’s position in the global AI race.
  
India currently holds less than 1% of global AI compute capacity, limiting its ability to develop and scale next-generation AI solutions. 
 
Stargate would bring massive computational power to Indian shores, enabling enterprises, startups, and researchers to run complex AI workloads domestically.
 
 
This local capacity would accelerate innovation in sectors like healthcare, finance, manufacturing, and education, while reducing dependency on overseas infrastructure.
 
Strategically, the project aligns with India’s push for data sovereignty. 
 
The government has already urged OpenAI to store Indian user data locally, mirroring practices of Microsoft, Google, and AWS.

 
Localized data and compute would strengthen compliance under the DPDP Act, build user trust, and protect national interests.
 
 
For OpenAI, India is the second-largest and fastest-growing market, offering not just revenue but also scale. 
 
However, execution will require tackling infrastructure challenges—reliable energy supply, advanced cooling, and GPU access.
 
 
If resolved, Stargate could establish India as an AI superpower, blending global ambition with local opportunity.