US' Stargate: Will India be able to tap into a $500 billion opportunity?

The announcement has generated both excitement and concern within the Indian AI community

The US’ $500 billion Stargate project, announced by Donald Trump on the second day of his presidency to build a massive AI infrastructure in the country, was greeted with cautious optimism in India, with some experts and industry captains sensing a big opportunity for Indian engineering talent and for the country as a whole, while others warned about what they said the America’s intent to take a strong control of AI.

 

Ashok Chandak, President of India Electronics and Semiconductor Association (IESA) for India, said this moment presents an opportunity to accelerate India’s AI ambitions by deepening partnerships with the US leveraging India’s role in ICET and IPEF, co-developing cutting-edge technologies, and scaling its domestic capabilities. Learning from the Stargate project, India could conceptualise and implement its own large-scale initiatives to strengthen its AI ecosystem.

 

 

“Major companies supporting this initiative -- such as Nvidia, Arm, Microsoft, Softbank, Oracle, and OpenAI -- already have a significant presence in India and actively utilise Indian talent. This creates avenues for Indian professionals to gain exposure and contribute to such a monumental project, further enhancing their expertise in advanced AI technologies,” Chandak said.

 

Will the US adopt a soft approach towards India?

 

Additionally, many of these companies have expressed concerns over the recent “Export Control of AI Diffusion/Chips” policy introduced by the Biden administration.

 

“There is cautious optimism that the incoming Trump administration might consider industry feedback during the 120-day review period and adopt a more relaxed stance on AI export controls, especially toward India and other strategic partners,” he added.

 

Anand Mahurkar, Founder & CEO, Findability Sciences, said, “This highlights the critical role of AI in shaping the global economy. Such initiatives not only accelerate technological innovation but also create opportunities for international collaboration, encouraging nations like India to prioritise similar visionary initiatives. At Findability Sciences, we view this as a pivotal moment to leverage AI for solving complex challenges and creating sustainable value worldwide.”

 

Japanese investment giant Softbank, OpenAI, Oracle, and MGX -- a tech investment firm of the United Arab Emirates government -- will deploy $100 billion immediately, said a statement from OpenAI.

 

This project seeks to secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefits for the entire world. The statement also said that this initiative will not only support the re-industrialisation of the United States but also provide a strategic capability to protect the national security of the US and its allies.

 

SoftBank and OpenAI are the lead partners for Stargate.  SoftBank is tasked with financial responsibility and OpenAI has operational responsibility. Masayoshi Son will be the chairman of the project.

 

“Arm, Microsoft, NVIDIA, Oracle, and OpenAI are the key initial technology partners. 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,” said the statement from OpenAI.

 

The project has the potential to create transformative impacts across various sectors. While its primary objective is to solidify the US’ leadership in the AI ecosystem, it also presents opportunities for India to leverage.

 

Weaponisation of tech?

 

Some industry leaders highlighted that it is time for the Indian government to get its act together on building AI infrastructure in the country.

 

Ajai Chowdhry, founder of HCL and chairman of EPIC Foundation & MGB, National Quantum Mission of India called for creating India’s own AI doctrine.

 

“This shows serious intent to take a strong control of AI, in addition to having all the LLM’s owned by the US. We seem to be getting to weaponisation of Tech. For strategic autonomy we must create our own AI doctrine and start controlling our own data strongly. Also we must create our own domestic hardware for Data Centres as it’s going to be very difficult to control our data. Government and the industry must work together to create the strategy for AI. What was thought of yesterday is no longer valid. It should be treated as an emergency!” he said.