How is the $500 bn Stargate Project poised to impact India's AI landscape

The newly sworn-in President of the US, Donald Trump, announced a $500 billion Artificial Intelligence (AI) infrastructure project called The Stargate Project. The initiative is backed by leading tech companies and funds which include ChatGPT-maker OpenAI, Oracle, Softbank, and the Emirati AI investor MGX who will be making an upfront investment of $100 billion.

Announcing it at the White House, President Trump called it the “largest AI infrastructure project by far in History”. The $500 billion over the four years would be spent on building as many as 20 data centers to cater to AI innovations.

For the Stargate Project, SoftBank has financial responsibility and OpenAI has operational responsibility with support from partners like Arm, Microsoft, Nvidia, and Oracle. “The buildout is currently underway, starting in Texas, and we are evaluating potential sites across the country for more campuses as we finalise definitive agreements,” OpenAI co-founder Sam Altman said.

“All of us look forward to continuing to build and develop AI—and in particular AGI—for the benefit of all of humanity. We believe that this new step is critical on the path, and will enable creative people to figure out how to use AI to elevate humanity.” 

What does it mean for India’s AI ecosystem

AI has revolutionised technology, impacting various sectors and industries. Recognising its transformative power, governments globally are vying for AI leadership. India actively participates in this global race, aiming to become a major player in AI innovation.

Last year, the Union Cabinet approved the IndiaAI mission at an outlay of ₹10,372 crore. This project, as the Ministry of Electronics and IT mentioned, is seen as a significant step towards progressing the country’s AI ecosystem. Key features include a scalable AI infrastructure with over 10,000 GPUs, developed through a public-private partnership, and an AI marketplace offering AI-as-a-service and pre-trained models to support startups and researchers.

The newly announced Stargate Project in the US could result in collateral benefits for India, believe experts. Jaspreet Bindra, AI evangelist and co-founder of AI&Beyond said that the sheer scale of the project will pave the way for collaboration opportunities between the two countries, especially on the talent front.

“Large Indian tech and IT companies could find opportunities to partner with the US on AI initiatives. Additionally, there could be potential knowledge transfers from the Stargate Project that would benefit Indian industries and AI development,” he said.

The main partners of the Stargate Project also have deep investments in India, creating a natural pathway for strategic collaboration. “This established ecosystem positions Indian data center companies and AI professionals to play a pivotal role in this global initiative, driving knowledge transfer and creating high-skilled opportunities while simultaneously strengthening India's domestic AI capabilities,” said Sridhar Pinnapureddy, Founder and CEO, CtrlS Datacenters.

A few experts point out that such initiatives and investments of such mammoth scale seem to lead the way for weaponisation of technology. Ajai Chowdhary, founder of HCL and Mission Governing Board Chairman of the National Quantum Mission said that it is important for India to create its own AI doctrine for strategic autonomy. “We must create our own domestic hardware for Data Centres as it’s going to be very difficult to control our data. The government and the industry must work together to create a strategy for AI. It should be treated as an emergency!”

Echoing similar thoughts, Naresh Singh, Senior Director Analyst, Gartner said that the biggest impact of the project on India could be in the form of the calibration that the government will have to do about its AI strategy.

“Modern AI requires massive infrastructure, including data centers, costly equipment and also huge amount of energy and water. India will have to think about how to ensure these are available to remain globally competitive,” he said.