OpenAI to Open First India Office in New Delhi This Year

OpenAI, the company behind ChatGPT, is set to establish its first office in India later this year, choosing New Delhi as its base. The move highlights the company’s growing focus on India—its second-largest market by user numbers—and marks a significant step in expanding its global footprint.

The Microsoft-backed AI leader has already registered as a legal entity in India and has begun hiring for local roles. This development follows the launch this week of OpenAI’s most affordable subscription plan to date, priced at $4.60 per month, aimed at tapping into India’s vast base of nearly one billion internet users.

India has quickly become a critical growth market for OpenAI, with usage surging at an unprecedented pace. According to newly released data, ChatGPT’s weekly active users in India have quadrupled over the past year, with students making up the largest share of the user base.

Navigating Legal and Competitive Challenges

OpenAI’s expansion comes as it faces mounting legal scrutiny in India. Several publishers and media houses have accused the company of using their content without permission to train ChatGPT. OpenAI has rejected these allegations, insisting its practices comply with the law.

At the same time, competition in India’s fast-growing AI market is heating up. Google’s Gemini and AI startup Perplexity have aggressively targeted Indian users, with both players offering premium features at little to no cost—a strategy that could challenge OpenAI’s monetization efforts.

Despite these hurdles, CEO Sam Altman emphasized India’s importance to the company’s long-term vision. “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 said.

Summary

OpenAI’s decision to launch an India office signals its intent to strengthen ties with one of the world’s largest digital economies. While legal disputes and fierce competition pose challenges, the company’s rapid user growth and strategic focus on affordability highlight the country’s central role in its future plans.

Frequently Asked Questions (FAQs)

1. Why is OpenAI opening its first office in India?

OpenAI is setting up its first India office in New Delhi to strengthen its presence in its second-largest market by user numbers. The company aims to expand access to advanced AI tools and build solutions tailored for India.

2. When will OpenAI’s India office open?

The office is expected to open later this year, though an exact launch date has not been disclosed.

3. What does OpenAI’s new subscription plan in India offer?

OpenAI recently launched its most affordable monthly subscription plan at $4.60, making ChatGPT’s premium features more accessible to Indian users.

4. How important is India for OpenAI’s growth?

India is a critical growth market, with nearly one billion internet users. OpenAI reported that ChatGPT’s weekly active users in India have quadrupled in the past year, with students forming the largest user group.

5. What legal challenges does OpenAI face in India?

Several publishers and media houses have accused OpenAI of using copyrighted content without permission to train ChatGPT. The company has denied any wrongdoing and maintains its practices comply with the law.

6. Who are OpenAI’s main competitors in India?

OpenAI faces stiff competition from Google’s Gemini and AI startup Perplexity, both of which are offering premium features at little or no cost to capture market share.

7. What did Sam Altman say about the India expansion?

CEO Sam Altman described the New Delhi office as a first step in OpenAI’s commitment to make AI more accessible in India and to build “AI for India, and with India.”

8. How will this expansion impact India’s AI ecosystem?

OpenAI’s entry is expected to boost India’s AI ecosystem by creating jobs, encouraging innovation, and intensifying competition, which could benefit end users with more affordable and advanced AI services.