Wedoany.com Report-Oct. 11, OpenAI and Sur Energy have signed a letter of intent to develop a major data center project in Argentina, with an estimated investment of up to $25 billion, the Argentine government announced on Friday. The project aims to establish a large-scale facility with a capacity of up to 500 megawatts to support advanced artificial intelligence computing.

OpenAI logo is seen in this illustration taken May 20, 2024.

According to the government statement, the initiative will operate under Argentina’s RIGI tax incentive program, which took effect last year. If completed, the project would become “one of the largest technology and energy infrastructure initiatives” in the country’s history, marking a milestone in Argentina’s digital and energy development.

OpenAI, which recently reached a $500 billion valuation after a secondary share sale, continues to expand its global footprint. The company’s flagship product, ChatGPT, now records more than 800 million weekly users worldwide. The Argentina project represents another major step in OpenAI’s efforts to enhance its computing capabilities and support the growing demand for artificial intelligence applications.

OpenAI CEO Sam Altman announced the plan on social media, stating: “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.” Altman emphasized that this will be the first Stargate project in Latin America, describing the region as “full of talent, creativity and ambition.”

The Stargate Argentina project is expected to combine advanced AI technologies with sustainable energy solutions, aligning with the country’s renewable energy goals. Sur Energy, a key player in Argentina’s energy sector, will contribute its expertise in large-scale power generation and infrastructure, supporting the project’s technical and operational requirements.

The announcement follows OpenAI’s developer conference earlier this week, where the company unveiled several new collaborations and product enhancements. During the event, OpenAI introduced a range of new tools designed to help developers create AI-driven applications and announced partnerships with major firms such as Spotify, Zillow, and Mattel. These collaborations reflect OpenAI’s ongoing strategy to broaden its integration across industries and strengthen its position in global AI innovation.

The planned data center in Argentina underscores the growing importance of artificial intelligence infrastructure in Latin America. It is expected to boost local technological capacity, attract further investment, and support digital transformation in the region. The facility’s large computing capacity will also help accommodate increasing AI workloads and contribute to energy-efficient computing solutions.

By partnering with Sur Energy and utilizing Argentina’s favorable investment framework, OpenAI aims to build a foundation for long-term technological collaboration in South America. The Stargate Argentina initiative highlights both companies’ commitment to innovation and sustainable development, positioning the project as a significant milestone in regional and global AI infrastructure expansion.