OpenAI to Launch First India Office in Delhi, Targets Booming AI Market

OpenAI, the Microsoft-backed creator of ChatGPT, is set to establish its first India office in New Delhi later this year, marking a significant step in its global expansion strategy. The move targets India, ChatGPT’s second-largest market by user numbers after the United States, where weekly active users have surged fourfold in the past year, driven largely by the country’s massive student population, the largest globally for ChatGPT.

The company has registered a legal entity, OpenAI India Private Limited, and initiated hiring for a local team to strengthen ties with government, businesses, developers, and academic institutions under the IndiaAI Mission. OpenAI’s CEO, Sam Altman, emphasized the strategic importance, stating, “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.” Altman is slated to visit India in September to further these efforts, including hosting the company’s first Education Summit and a Developer Day later this year.

India’s nearly one billion internet users make it a critical market, prompting OpenAI to launch its most affordable ChatGPT Go subscription at $4.60 per month, integrated with UPI payments to capture the price-sensitive market. The company has also enhanced its GPT-5 model for better Indic language support and introduced a Study Mode feature popular among Indian learners.

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However, OpenAI faces challenges, including legal disputes with Indian news outlets and book publishers accusing the firm of unauthorized use of their content to train ChatGPT. A notable case involves a copyright lawsuit by ANI in the Delhi High Court, where OpenAI argues it has no local presence or servers in India, claiming compliance with U.S. laws. The company denies wrongdoing, asserting that its use of data is transformative and akin to human learning.

Competition is fierce, with Google’s Gemini and AI startup Perplexity offering free advanced plans to Indian users, intensifying the race for market share. India ranks among the top five global developer markets for OpenAI, underscoring its tech talent and vibrant ecosystem. Union Minister for Electronics and IT, Ashwini Vaishnaw, welcomed the move, noting, “OpenAI’s decision reflects India’s growing leadership in digital innovation and AI adoption.”

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