The Argentine government disclosed on Friday that U.S. artificial intelligence firm OpenAI has entered into a letter of intent to partner with Argentine-U.S.-owned company Sur Energy for the development of a large-scale data center in Argentine Patagonia. A presidential press release characterized the initiative as a “pioneering artificial intelligence infrastructure project” designed to position Argentina “at the forefront of the global artificial intelligence ecosystem.” The initiative is anticipated to possess the ability to “host the next generation of AI computing” and achieve a capacity of as much as 500 MW through renewable energy sources. On Friday morning, President Javier Milei and Argentine Nuclear Board president Demian Reidel convened with representatives from OpenAI to unveil Stargate Argentina, an initiative projected to attract investments totaling up to US$25 billion for the nation.
The arrangement will be organized within the parameters of the investment initiative RIGI. The initiative offers tax incentives, advantages in currency exchange, and additional benefits to entities prepared to invest in foreign currency amounts surpassing US$200 million. The government is wagering that OpenAI’s establishment in the country will position Argentina as a center for technological innovation in Latin America, serving as a foundation for the development of new AI applications and the training of local professionals in high-demand sectors. In a video presentation confirming the news, OpenAI CEO Sam Altman described the project as a “milestone is more than just infrastructure.”
“It’s about empowering individuals throughout Argentina with artificial intelligence. We are enthusiastic about collaborating with Argentina as it progresses toward establishing itself as an AI hub for the entirety of Latin America,” he added. Argentine media outlets report that Sur Energy is affiliated with the investment group Sur Ventures. The organization was previously under the leadership of Argentine entrepreneur Matías “Mat” Travizano, who tragically passed away in a hiking accident in the United States in September. The organization’s mission statement articulates its objective to “empower the future of artificial intelligence by delivering competitive power solutions to AI data centers worldwide.”
Emiliano Kargieman, stated that the Stargate Argentina project signifies a “historic opportunity” for the nation, positioning it as a “key player in the new global digital and energy landscape.” Milei initially encountered Altman during a five-day visit to San Francisco in May. While in office, the Argentine president engaged in discussions with the CEOs of Google and Apple, Sundar Pichai and Tim Cook, respectively, and also delivered a speech at Stanford University that generated considerable controversy. The president subsequently shared a photograph of Altman and himself, indicating that their discussion revolved around the “enormous possibilities a libertarian Argentina offers.”