OpenAI has announced plans to open its first office in India, located in New Delhi, as part of its expansion into the country’s growing AI landscape, following the launch of a ChatGPT plan for Indian users.
The company’s decision to establish a local presence includes forming an India-based team, with the corporate office expected to open in the coming months. This move is an extension of OpenAI’s recent recruitment efforts in the region. In April 2024, Pragya Mishra, formerly of Truecaller and Meta, was appointed as the public policy and partnerships lead for OpenAI in India. Additionally, Rishi Jaitly, who previously headed Twitter India, has joined as a senior advisor, tasked with facilitating discussions with the Indian government concerning AI policy.
India, recognized as the world’s second-largest market for internet and smartphone users, presents a strategic opportunity for OpenAI as it competes with industry giants such as Google and Meta, as well as emerging AI companies like Perplexity. These companies are all vying to capitalize on India’s vast user base.
OpenAI has stated its intention to recruit a local team focused on “strengthening relationships with local partners, governments, businesses, developers, and academic institutions.” The company aims to gather feedback from Indian users to tailor its products to the local market, with plans to develop features and tools specifically for India.
“Opening our first office and building a local team is an important first step in our commitment to make advanced AI more accessible across the country and to build AI for India, and with India,” stated Sam Altman, CEO of OpenAI.
In addition to the office announcement, OpenAI will host its inaugural Education Summit in India this month, followed by its first Developer Day in the country later in the year.
Despite the opportunities, OpenAI faces challenges in India, particularly in converting free users to paid subscribers. The company, like other major AI players, must overcome monetization hurdles in the price-sensitive South Asian market. To address this, OpenAI recently introduced ChatGPT Go, a sub-$5 plan priced at ₹399 per month (approximately $4.75), positioning it as the first ChatGPT plan in India aimed at attracting a broader audience. This launch occurred shortly after Perplexity partnered with Bharti Airtel to offer Airtel’s over 360 million subscribers access to Perplexity Pro for 12 months.
Integration with Indian businesses also poses a challenge. In November, Asian News International (ANI) filed a lawsuit against OpenAI, alleging unauthorized use of its copyrighted news content. A group of Indian publishers joined the lawsuit in January.
The Indian government is actively promoting AI across various sectors, aiming to enhance the country’s global position in AI. OpenAI intends to leverage this momentum.
“India has all the ingredients to become a global AI leader — amazing tech talent, a world-class developer ecosystem, and strong government support through the IndiaAI Mission,” Altman commented.
India is not OpenAI’s first venture into the Asian market, as the company has previously established offices in Japan, Singapore, and South Korea. Comparatively, Anthropic, another AI company, prioritized Japan over India, setting up its office in Tokyo.
According to a Silicon Valley-based investor source, one reason AI companies may not prioritize India as an early market is the difficulty in securing enterprise customers.
“OpenAI’s decision to establish a presence in India reflects the country’s growing leadership in digital innovation and AI adoption,” said Indian IT Minister Ashwini Vaishnaw. “As part of the IndiaAI Mission, we are building the ecosystem for trusted and inclusive AI, and we welcome OpenAI’s partnership in advancing this vision to ensure the benefits of AI reach every citizen.”
