OpenAI has announced that it will open its first office in India, days after the company launched a ChatGPT plan designed for Indian users.
India is the second-largest internet and smartphone market after China. It has over 700 million internet users and a thriving digital economy.
These numbers make the country a natural focus for companies competing in AI. OpenAI faces rivals such as Google, Meta, and Perplexity.
Each company aims to establish a foothold in India’s rapidly expanding AI market. The opportunity is vast, but competition is intense.
Earlier this week, OpenAI launched ChatGPT Go in India. The plan costs ₹399 per month, or about $4.75.
The plan is to use the lower price offering to reach more users in a cost-sensitive market. This came after Perplexity’s partnership with Bharti Airtel, which gave over 360 million subscribers access to its AI service.
Despite the trend, some companies are taking a detour. Rivals such as Anthropic have chosen other Asian markets, like Japan.
A Local Presence
OpenAI will set up a local team to manage its work in India. The team will engage with the government, businesses, universities, and developers.
Through these partnerships, the company will adapt its operations and products to local needs. OpenAI had already embarked on a hiring quest for this.
In 2024, OpenAI appointed Pragya Mishra, a former Meta and Truecaller executive, as its policy and partnerships lead in India.
It also brought in Rishi Jaitly, Twitter India’s former head, as a senior advisor. Both appointments reflect OpenAI’s focus on policy, regulation, and collaboration.
The company will also host events to strengthen its presence. Its first Education Summit in India will take place this month. Later in the year, it plans to hold its first Developer Day in the country.
Challenges
Despite the opportunity, OpenAI faces several challenges in India. First, monetization is a serious hurdle.
Many users rely on free services; convincing them to pay for subscriptions remains difficult. Even at ₹399 per month, adoption is not guaranteed.
Second, the company faces legal risks. In late 2024, Asian News International (ANI) sued OpenAI.
The news agency claimed that OpenAI used its content without permission. Other Indian publishers later joined the lawsuit.
Third, attracting enterprise clients is a challenge. Many Indian businesses are cautious about large-scale AI adoption.
This hesitation makes it harder for companies like OpenAI to secure long-term contracts.
Government Support
The Indian government has been vocal in its support for artificial intelligence. Through the IndiaAI Mission, it is working to position the country as a trusted leader in the field.
Indian IT Minister Ashwini Vaishnaw welcomed OpenAI’s move. In a statement, he said India is building an ecosystem for “trusted and inclusive AI.”
He also noted that the government values OpenAI’s partnership in this effort. This government backing is crucial.
It signals stability for companies investing in India and gives confidence to developers and researchers who want to build in the AI sector.
