OpenAI, the company behind ChatGPT, is considering a monumental $25 billion investment to construct a cutting-edge data center in Argentina, in collaboration with Sur Energy. This ambitious project, dubbed "Stargate Argentina," marks OpenAI's first major venture in Latin America and signifies a crucial step in the company's global expansion.
The Argentine government has announced a landmark agreement with OpenAI and Sur Energy, an Argentine-U.S. firm, to build this large-scale AI data center in Patagonia. The facility is projected to have a capacity of 500 megawatts, entirely powered by renewable energy sources, aligning with a commitment to sustainable growth and energy-efficient innovation. While the specific location and timeline remain undisclosed, both companies are exploring integrating renewable energy sources to power the data center's extensive computing operations.
The "Stargate Argentina" project aims to establish Argentina as a key player in the global AI ecosystem, positioning the country at the forefront of AI development in Latin America. Argentina's President Javier Milei and Argentine Nuclear Board president Demian Reidel announced the project alongside OpenAI representatives. The initiative will be supervised by Argentina's RIGI investment program, which supports tax incentives and exchange rate benefits, attracting foreign investors who have already committed over $200 million.
OpenAI CEO Sam Altman has expressed his enthusiasm for the project, calling it a "milestone" and emphasizing the importance of bringing AI to the people of Argentina. In a social media post, Altman stated, "We are proud to announce plans to launch Stargate Argentina, an exciting new infrastructure project in partnership with one of the country's leading energy companies, Sur Energy". He further described Latin America as a region "full of talent, creativity, and ambition".
Sur Energy, a leading renewable energy developer in Argentina, is part of the Sur Ventures investment group. The company aims to empower the future of artificial intelligence by delivering competitive power solutions to AI data centers worldwide. The partnership between OpenAI and Sur Energy underscores a commitment to sustainable growth and energy-efficient innovation.
The data center project aligns with OpenAI's broader strategy to scale up its infrastructure to meet the increasing demand for AI computing. This includes initiatives like Stargate, involving substantial investments in data centers, GPUs, electricity, and cooling. With over 800 million weekly users for its ChatGPT service and the rapid growth of its AI-powered video generating tool, Sora, OpenAI is experiencing exponential growth, solidifying its position as the world's most valuable startup with a $500 billion valuation.
The Argentine government anticipates that OpenAI's presence in the country will foster technological innovation in Latin America, creating a hub for AI development and the training of local professionals in high-demand areas. The "OpenAI for Countries" initiative will also expand access to OpenAI technology across Argentina, starting with government agencies.
