OpenAI is arranging plans for an extensive data center, drawing potential comparisons to a gigawatt, in India, amidst rumors of an impending data bubble.

OpenAI, the American artificial intelligence (AI) research laboratory, is set to make an official announcement about a potential data center in India later this month. This development comes as the company seeks to expand its global footprint and tap into India's growing AI market.

India, OpenAI's second-largest market, has the potential to become the company's largest. The US administration's use of access to high-tech AI hardware as a tool in trade negotiations might have some impact on OpenAI's data center plans, but the company is pushing forward.

OpenAI has already secured deals for data centers in Norway and Abu Dhabi. Now, it is in talks with Indian officials and local companies, including the Reliance Group led by Mukesh Ambani, to establish a data center with at least 1 GW capacity in India. The specific government officials involved and the exact locations or dates remain undisclosed.

The Reliance Group's data center, if completed, could potentially compete with OpenAI's data center in India. The Reliance Group is developing a data center with a total capacity of three gigawatts, which would be the largest in India. The Reliance Group's data center will primarily use renewable energy, aligning with OpenAI's commitment to sustainable practices.

The US-India relationship has deteriorated due to trade tariffs, but OpenAI is not deterred. The company is exploring local energy sources for the data center and seeking regulatory approval. OpenAI is also pushing an 'OpenAI for Countries' initiative to accelerate AI development and adoption in democratic countries.

The official announcement for OpenAI's new data center project is expected in the coming weeks. The data center, if built, would be one of the largest in India, further solidifying OpenAI's presence in the country.

Meanwhile, OpenAI has secured deals with the Indian federal government to build large and small language models for government use. However, recent setbacks such as the disastrous launch of GPT-5 and a hiring freeze at Meta's AI division have raised questions about OpenAI's future.

Despite these challenges, OpenAI's Stargate project aims to quickly scale up American AI data center capacity. The company is currently in talks with Indian officials and local companies to secure the land for the data center. As the details unfold, India and the world watch with anticipation as OpenAI continues to shape the future of AI.

OpenAI is arranging plans for an extensive data center, drawing potential comparisons to a gigawatt, in India, amidst rumors of an impending data bubble.