Key facts
- OpenAI is in talks to train its models in Australia.
- The company is partnering with NEXTDC to develop a sovereign AI infrastructure.
- A new AI campus and GPU supercluster will be built at NEXTDC's S7 site in Sydney.
- The facility is expected to be the largest data center in the southern hemisphere at 650 megawatts.
- OpenAI intends to be an initial offtaker for the compute capacity.
- A skills initiative will provide AI training to over 1.2 million Australian workers and small businesses.
OpenAI is exploring the possibility of training its artificial intelligence models in Australia, signaling a significant commitment to the country's AI development and sovereign capabilities. The U.S. AI giant has launched its 'OpenAI for Australia' initiative, which includes a substantial partnership with data center company NEXTDC. This collaboration aims to establish a next-generation hyperscale AI campus and a large-scale GPU supercluster at NEXTDC's S7 site in Eastern Creek, Sydney. The facility is engineered to be the largest data center in the southern hemisphere, with a capacity of 650 megawatts, and will provide sovereign compute capacity for sensitive and mission-critical workloads across government, enterprise, research, and national infrastructure.
Under the 'OpenAI for Countries' program, OpenAI intends to be an initial offtaker for the compute capacity, with the option to scale over time. This move is expected to generate significant economic benefits, including job creation during construction and long-term technical roles. The initiative also encompasses a nationwide skills development program, with OpenAI collaborating with major Australian employers Commonwealth Bank, Coles, and Wesfarmers. This program aims to roll out essential AI skills training to over 1.2 million Australian workers and small businesses, starting in 2026. Commonwealth Bank will make its training modules available to one million small business customers, while Coles and Wesfarmers will provide tailored programs to their entire workforces. Additionally, OpenAI is launching a startup program in partnership with venture capital firms like Blackbird, Square Peg, and AirTree to support local innovation.