Inside OpenAI’s India Expansion: Unlocking the World’s Second-Largest AI Market

 

New Delhi: ChatGPT maker OpenAI is set to open its first corporate office in India later this year, marking its formal entry into one of the world’s biggest and fastest-growing AI markets. The new office will be located in New Delhi, with hiring already underway to build a local team.

Currently, OpenAI has just one employee in the country — Pragya Misra, who leads public policy and partnerships.

“Opening our first office and building a local team is an important step in our commitment to make advanced AI more accessible across the country and to build AI for India, and with India,” OpenAI CEO Sam Altman said. He praised India’s “amazing tech talent, world-class developer ecosystem, and strong government support.”

Why India Matters for OpenAI

India is now ChatGPT’s second-largest market after the U.S.. The company recently launched a low-cost $4.60 monthly plan for Indian users, alongside its free and premium subscription options. According to OpenAI, weekly active users of ChatGPT in India have quadrupled over the past year, with students making up the largest share.

By expanding locally, OpenAI aims to work more closely with the government, businesses, and developers, while creating tools tailored for Indian needs. The company has also pledged support for the $1.2 billion IndiaAI Mission, a government initiative to develop local AI models and ecosystems.

Challenges and Competition

OpenAI’s India push comes with hurdles. Several news publishers and book companies have accused it of using their content without permission to train ChatGPT — allegations the company denies.

At the same time, OpenAI faces stiff competition from rivals like Google’s Gemini and AI startup Perplexity, which are aggressively expanding in India and offering advanced features for free.

What’s Next

Later this year, OpenAI will host its first Education Summit and first Developer Day in India, aiming to bring together students, startups, and enterprises working on AI innovation.

Government leaders have welcomed the move. Union Minister Ashwini Vaishnaw said: “OpenAI’s decision to establish a presence in India reflects the country’s growing leadership in digital innovation and AI adoption.”

From AI-powered farming tools to recruitment platforms and governance solutions, Indian businesses are already using OpenAI’s technology. With its new office, OpenAI hopes to deepen those connections and cement India’s place at the center of its global growth strategy.

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