OpenAI opens its first India office in New Delhi
OpenAI has announced plans to open its first office in India, marking a major step in the company’s bid to tap into one of the world’s fastest-growing AI markets. The move comes just days after the company rolled out ChatGPT Go, a budget-friendly subscription plan tailored for Indian users.
The San Francisco–based company confirmed Friday that it will establish a corporate office in New Delhi in the coming months and build a dedicated local team. The office will focus on strengthening ties with Indian partners, government bodies, businesses, developers, and academic institutions.
“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.
Expanding India Presence
The announcement builds on recent hires that highlight OpenAI’s growing commitment to the region. In April 2024, the company brought on Pragya Misra — a former executive at Truecaller and Meta — as its public policy and partnerships lead in India. It also appointed Rishi Jaitly, Twitter India’s former head, as a senior advisor to help guide discussions with the Indian government on AI regulation and policy.
OpenAI has also scheduled its first Education Summit in India this month and plans to host its first Developer Day in the country later this year.
India’s AI Potential
India, home to the world’s second-largest internet and smartphone market, is viewed as a natural fit for OpenAI’s expansion. The company faces competition from global tech giants like Google and Meta, as well as rising AI startups such as Perplexity — which recently struck a deal with telecom giant Bharti Airtel to give 360 million subscribers access to Perplexity Pro for a year.
“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,” Altman said.
Indian IT Minister Ashwini Vaishnaw welcomed the move, adding:
“OpenAI’s decision to establish a presence in India reflects the country’s growing leadership in digital innovation and AI adoption. 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.”
Local Challenges Ahead
Despite the enthusiasm, OpenAI faces hurdles in India. Monetization in a price-sensitive market remains a key challenge. The newly launched ChatGPT Go plan, priced at ₹399 per month (around $4.75), aims to make the tool affordable for mass adoption — but converting India’s large base of free users into paying customers is far from guaranteed.
The company also faces legal challenges. Last year, Indian news agency ANI sued OpenAI over the alleged unauthorized use of its copyrighted content, with other Indian publishers later joining the case.
Additionally, AI companies often find it difficult to secure large-scale enterprise customers in India compared to markets like Japan or Singapore, which explains why many rivals — including Anthropic — have prioritized other Asian markets first.
A Strategic Bet
Nonetheless, India’s AI momentum is undeniable. The government has placed AI at the heart of its digital policy agenda, and global investors see the country as a rising hub for AI innovation. For OpenAI, establishing a presence in India represents both a growth opportunity and a chance to help shape the country’s AI ecosystem.
