OpenAI has announced plans to establish its first office in India, just days after launching a low-cost ChatGPT plan designed for Indian users. The company said on Friday it will set up a corporate office in New Delhi in the coming months and begin hiring a local team.
This move builds on earlier efforts in the country. In April 2024, OpenAI appointed former Truecaller and Meta executive Pragya Misra as public policy and partnerships lead in India. It also brought on former Twitter India head Rishi Jaitly as a senior advisor to manage government outreach.
Why India Matters
India, the world’s second-largest internet and smartphone market, is a key target for OpenAI. The company is competing with global players such as Google and Meta, as well as emerging challengers like Perplexity, to reach the country’s massive user base.
OpenAI says its Indian team will “focus on strengthening relationships with local partners, governments, businesses, developers, and academic institutions.” The company also plans to build tools and features tailored for Indian users.
CEO Sam Altman framed the office opening as part of a broader commitment. “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,” he said.
The company will also host its first Education Summit in India this month and plans to hold its first Developer Day in the country later this year.
Challenges Ahead
Despite India’s potential, OpenAI faces hurdles. Converting free users into paying subscribers remains a major challenge in the price-sensitive market. Earlier this week, the company introduced a new ₹399 ($4.75) ChatGPT Go plan aimed at mass adoption.
Competition is heating up. Perplexity recently struck a deal with Bharti Airtel to offer Pro subscriptions to 360 million Airtel users for a year. OpenAI also faces legal pushback, including a lawsuit filed by ANI and a group of Indian publishers over alleged copyright misuse.
The Indian government has positioned AI as a national priority through its IndiaAI Mission. IT Minister Ashwini Vaishnaw welcomed OpenAI’s entry, saying, “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.”
OpenAI has previously established offices in Japan, Singapore, and South Korea. Rival Anthropic has chosen Japan as its main Asian hub, suggesting the challenges of monetizing enterprise AI in India may have influenced its slower prioritization.
What The Author Thinks
Opening an office in India is more than a symbolic gesture—it’s a test of whether OpenAI can succeed outside high-income markets. Pricing, cultural adaptation, and regulatory hurdles will determine whether the company becomes an everyday tool for millions of Indians or remains a niche service. Unlike Japan or Singapore, where monetization is easier, India requires patience and a willingness to tailor products to a very different digital economy.
Featured image credit: Wikimedia Commons
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