OpenAI has announced plans to establish its first office in New Delhi, India, marking a major step in its strategy to tap into one of the world’s fastest-growing AI markets. The announcement comes just days after the company launched ChatGPT Go, a sub-$5 subscription plan priced at ₹399 per month ($4.75), tailored to India’s price-sensitive consumer base.
The office will house a local team tasked with building partnerships with governments, businesses, developers, and academic institutions. OpenAI CEO Sam Altman described the move as “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.”
This expansion builds on recent leadership hires:
- Pragya Mishra, former Truecaller and Meta executive, appointed as Public Policy and Partnerships Lead in India (April 2024).
- Rishi Jaitly, former Twitter India head, joined as Senior Advisor to guide AI policy discussions with the Indian government.
A Competitive AI Battleground
India — the world’s second-largest internet and smartphone market after China — has become a key focus for AI players. OpenAI’s entry follows moves by rivals:
- Google recently rolled out AI Mode in Search across Africa and is heavily investing in Gemini-powered tools in India.
- Meta is embedding its Llama-based AI assistant into WhatsApp and Instagram, both of which dominate Indian social media.
- Perplexity AI partnered with Bharti Airtel earlier this week, giving 360 million subscribers free access to Perplexity Pro for 12 months.
OpenAI will also host its first Education Summit in India this month and a Developer Day later this year, signaling deeper integration with the local developer ecosystem.
Challenges in Monetization & Regulation
Despite India’s vast user base, the market presents hurdles. Converting free ChatGPT users into paying subscribers remains a challenge in a price-sensitive economy. While the new ₹399 ChatGPT Go plan is designed to reach the masses, its success will be tested against cheaper local AI tools and bundled offerings from competitors.
On the regulatory front, OpenAI faces scrutiny. In November, Indian news agency ANI sued the company over alleged copyright misuse of its content, a case later joined by other publishers. Still, the Indian government has welcomed OpenAI’s entry, tying it to the IndiaAI Mission, which seeks to position the country as a global AI hub.
“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,” said Ashwini Vaishnaw, Indian IT Minister.
Global Expansion Context
This is not OpenAI’s first Asian office. The company has already opened operations in Japan, Singapore, and South Korea. Rival Anthropic has also prioritized Japan, opening an office in Tokyo instead of India, citing challenges in converting Indian enterprise clients.
By choosing New Delhi, OpenAI signals its intent to not only grow its consumer base but also influence policy and enterprise adoption in a market that could shape the future of AI globally.
