Indian data center stocks rallied on October 3 as OpenAI became world's most valuable private company by hitting valuation of $500 billion.
OpenAI, the company behind ChatGPT, has reached a valuation of $500 billion, following a deal in which current and former employees sold roughly $6.6 billion worth of shares.
This represents a bump-up from its current valuation of $300 billion, underscoring OpenAI's rapid gains in both users and revenue.
As part of the deal, OpenAI employees sold shares to a consortium of investors including Thrive Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi's MGX and T. Rowe Price.
Consequently, a rub-off effect of the Artificial Intelligence-related optimism was seen in Indian data center stocks as Orient Technologies shares rallied 17% on October 3 while Netweb stock rally continued for third day by rising 3%.
Shares of Black Box and E2E Technologies had hit 5% upper circuit each. Shares of Anant Raj rose 2.5% to trade at Rs 717 apiece.
The share sale adds to SoftBank's earlier investment in OpenAI's $40 billion primary funding round.
OpenAI generated around $4.3 billion in revenue in the first half of 2025, about 16% more than it generated all of last year, the Information reported earlier this week.
Another factor that aided the October 3 rally in data center stocks is a Bloomberg report that said, citing sources, Sify Infinit Spaces Ltd is preparing to file for a $500-million initial public offering in the next two weeks.
The IPO comes as technology firms and investors ramp up bets on data centers in the country, driven by rising digital consumption, artificial intelligence adoption and data localisation initiatives.
India’s demand for data centers is set to more than double over the next three years and an investment of about Rs 90,000 crore ($10.1 billion) will be needed to meet the expansion, according to rating company ICRA Ltd.
Sify Infinit is among the key local companies operating in India’s data-center space, which also has presence of global players such as NTT Inc. of Japan, Temasek-backed STT Global Data Centres and Carlyle Group-backed Nxtra Data Ltd.
With inputs from agencies
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