OpenAI Expands Globally: Announces First Indian Office Amidst Growing AI Market, Aiming to Tap into Massive User Base and Leverage Government Support
Leading AI company OpenAI has declared plans to establish its first office in India, following the launch of a customized ChatGPT platform designed for Indian users. This move comes as the firm seeks to capitalize on India’s rapidly expanding artificial intelligence market.
On Friday, OpenAI announced it would assemble a local team in India and open a corporate headquarters in New Delhi within the next few months. This decision follows recent hiring initiatives by the company in the region, including the appointment of Pragya Mishra, former executive at Truecaller and Meta, as its public policy and partnerships lead for India, and Rishi Jaitly, former head of Twitter India, as a senior advisor to facilitate discussions with the Indian government on AI policy.
With over 600 million internet users and a thriving smartphone market, India represents an attractive target for OpenAI, which is competing against tech titans like Google and Meta, as well as emerging AI players such as Perplexity.
OpenAI aims to strengthen relationships with local partners, governments, businesses, developers, and academic institutions by employing a dedicated team in India. The company plans to gather user feedback from the Indian market to tailor its products for the local audience and even develop features and tools specifically designed for the country.
“Establishing our first office and building a local team is an essential step in our commitment to making advanced AI more accessible across the nation and creating AI for India, with India,” said Sam Altman, CEO of OpenAI, in a statement.
OpenAI will also host its inaugural Education Summit in India this month and its first Developer Day later this year.
While India presents significant opportunities for OpenAI, the company faces several challenges, including finding ways to convert free users into paying subscribers. As with other major AI players, monetization remains a hurdle in India’s price-sensitive South Asian market.
To address this issue, OpenAI recently introduced its affordable ChatGPT plan called ChatGPT Go, priced at approximately $4.75 per month (₹399), making it the first ChatGPT plan in India accessible to a broader audience. This announcement follows closely on the heels of arch-rival Perplexity partnering with Indian telco giant Bharti Airtel to provide Airtel’s over 360 million subscribers access to Perplexity Pro for 12 months.
OpenAI is also confronted with legal issues related to integrating with Indian businesses. In November, Indian news agency Asian News International (ANI) sued OpenAI for allegedly using copyrighted news content without permission, a claim joined by a group of Indian publishers in January.
Despite these challenges, the Indian government is actively promoting AI across various departments and aims to bolster India’s position on the global AI landscape – a momentum that OpenAI hopes to capitalize on.
“India has all the essential components to emerge as a global leader in AI – exceptional tech talent, a robust developer ecosystem, and strong government support through the IndiaAI Mission,” Altman stated.
OpenAI’s decision to establish a presence in India underscores the country’s growing influence in digital innovation and AI adoption. Indian IT Minister Ashwini Vaishnaw commented, “OpenAI’s choice to establish a presence in India reflects the nation’s burgeoning leadership in digital innovation and AI adoption. As part of the IndiaAI Mission, we are fostering an ecosystem for trusted and inclusive AI, and we welcome OpenAI’s partnership in advancing this vision to ensure that the benefits of AI reach every citizen.”
