In a significant move to solidify its presence in one of its fastest-growing and most crucial markets, OpenAI, the creator of the popular AI chatbot ChatGPT, has announced its plans to open its first India office in New Delhi later this year. The company, which is backed by Microsoft, has already been established as a legal entity in India and has initiated the process of building a local team.
The decision to open a physical office in India underscores the country's strategic importance to OpenAI's global expansion. According to newly released market data, India is ChatGPT's second-largest user base by number, and weekly active users have quadrupled in the past year. The country also boasts the largest population of student users on the platform.
"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," OpenAI CEO Sam Altman said in a statement. The new office will serve as a hub for executive operations and will focus on strengthening relationships with local partners, government bodies, businesses, and developers.
The announcement comes on the heels of several India-specific initiatives from OpenAI, including the recent launch of its most affordable monthly plan at $4.60, which is specifically tailored for the nearly one billion internet users in the country. This plan also uniquely integrates UPI for payments, making it more accessible to the local market. The company has also been actively improving its models' performance in Indic languages.
OpenAI's expansion into India is not without its challenges. The company faces stiff competition from rivals such as Google's Gemini and the AI startup Perplexity, both of which have launched offerings that make their advanced plans free for many users in the market. Furthermore, OpenAI is navigating legal challenges in India, with news outlets and book publishers alleging that the company used their content without permission to train ChatGPT. The company has denied any wrongdoing.
Despite these challenges, the move to establish a permanent presence in New Delhi signals OpenAI's long-term vision for the Indian market. It reflects a desire to tap into India's vast tech talent pool, engage with the country's vibrant developer ecosystem, and collaborate with the government's "IndiaAI Mission" to advance AI adoption and innovation. As part of this commitment, OpenAI is also planning to host its first Education Summit and a Developer Day in India this year, bringing together key stakeholders to shape the future of AI in the country.