OpenAI Enters India: A New Era for AI Expansion

OpenAI, the creator of ChatGPT, has officially made its entrance into India, announcing plans to open its first office in New Delhi later this year. This strategic decision highlights the company’s ambitions in a market that has quickly become its second-largest by user base and one of its fastest-growing globally.

Having established a legal entity in India, OpenAI is in the process of assembling a local team. This team will focus on nurturing relationships with partners, government institutions, businesses, developers, and educational organisations. Sam Altman, co-founder and CEO of OpenAI, expressed that India possesses all the essential elements to become a global leader in AI, citing its world-class tech talent, vibrant developer ecosystem, and robust government support through the IndiaAI Mission. The establishment of the local office and team represents a significant step forward in OpenAI’s commitment to making advanced AI more accessible throughout the nation and developing AI tailored for India, as well as in collaboration with India.

OpenAI’s Market Strategy in India

The timing of OpenAI’s expansion is strategic; India has rapidly emerged as a pivotal market, with ChatGPT’s weekly active users growing four times in the past year alone. The country now boasts the largest student user base of the platform and ranks among the top five developer markets globally. OpenAI released this information in a statement, originally reported by Reuters. To leverage this growth, the company has recently launched ChatGPT Go, a subscription service designed specifically for India, priced at ₹399 per month and incorporating UPI integration, making it the most affordable plan available worldwide.

Initiatives Tailored for the Indian Market

This expansion coincides with multiple initiatives tailored to benefit the Indian market. Among these initiatives are OpenAI Academy, an AI literacy programme launched in collaboration with the Ministry of Electronics and Information Technology, improved Indic language support in GPT-5, and a new “Study Mode” aimed at enhancing the learning experience for students through interactive guidance. Additionally, OpenAI is set to host its inaugural Education Summit in India later this month, with a Developer Day planned for later in the year.

Government Support and Industry Challenges

The Indian government has welcomed OpenAI’s decision to establish operations in the country. IT Minister Ashwini Vaishnaw stated that OpenAI’s presence is indicative of India’s growing leadership in digital innovation and the adoption of AI technologies. As part of the IndiaAI Mission, the government is working to create a trusted and inclusive AI ecosystem, and appreciates OpenAI’s collaboration to ensure that the advantages of AI reach all citizens.

However, OpenAI is not without challenges. The company is currently facing legal disputes from news and book publishers in India, who claim that their content was used without permission to train ChatGPT, a claim the company disputes. Additionally, competition is heating up as Google’s Gemini and the AI startup Perplexity are both aggressively pursuing market share in India, offering some premium services for free to attract users.

For OpenAI, India presents a dual opportunity and challenge: a vast, youthful, and digitally adept population keen to explore AI tools, alongside a regulatory environment that is becoming increasingly proactive. How the company addresses these issues could influence its broader international growth strategy.