OpenAI’s India Bet: Why the ChatGPT Maker is Finally Planting Roots in Delhi

New Delhi is about to witness a landmark moment in the global AI race. OpenAI, the company behind ChatGPT, is gearing up to open its very first office in India later this year, marking a strategic push into what has rapidly become its second-largest market by user numbers. Backed by Microsoft and already a household name in the AI space, OpenAI’s move signals that India is no longer just a big consumer base—it’s now central to the global AI playbook.

The company has formally registered itself as a legal entity in India and has begun building a local team. Hiring is already underway.

In a statement shared with Reuters, OpenAI said, “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.”

Why OpenAI Is Coming to India?

India’s digital ecosystem is vast and unlike any other in the world. With close to a billion internet users and the largest young, tech-savvy population globally, the country presents a massive growth opportunity for AI companies. OpenAI has been quick to adapt to this reality. Just this week, it rolled out its most affordable monthly plan yet—priced at $4.60—tailored for Indian users.

The timing is significant. As AI adoption surges, affordability becomes key. For millions of Indian students, entrepreneurs, and professionals who already make up the largest demographic of ChatGPT users worldwide, this new plan opens the door to premium AI capabilities at a price point aligned with the local market.

A Market Full of Promise—and Competition

But OpenAI’s India play won’t be without challenges. The company is entering a market where competition is heating up fast. Google’s Gemini and fast-growing AI startup Perplexity are already offering advanced AI services, many of them free to attract India’s cost-conscious users.

In fact, this competition is shaping India into a testing ground for global AI players. Whoever cracks India—balancing affordability, accessibility, and trust—will likely gain an edge in defining how AI adoption evolves worldwide.

Rising User Base, Rising Questions

OpenAI’s data shows just how rapidly India is leaning into AI. The company revealed that weekly active users of ChatGPT in India have quadrupled over the past year, with students forming the single largest cohort of users. From homework assistance and coding support to mock interviews and business idea brainstorming, ChatGPT is becoming a digital companion for India’s young population.

However, alongside this growth, OpenAI finds itself navigating legal complexities. Several Indian news outlets and publishers have accused the company of using their content without permission to train ChatGPT. OpenAI has firmly denied any wrongdoing, but the matter underscores the regulatory scrutiny and copyright debates that global AI firms will need to face head-on in India.

The Bigger Picture: AI for India, AI with India

Sam Altman, OpenAI’s CEO, has often spoken about India’s importance in shaping the future of AI. His statement—“to build AI for India, and with India”—is more than a slogan. It reflects a broader recognition that India is not just a passive consumer market but also a potential hub for innovation, talent, and partnerships in the AI ecosystem.

Delhi, with its proximity to policymakers, regulators, and India’s fast-growing tech community, is a strategic choice for OpenAI’s first office. The move also comes at a time when India is actively drafting AI regulations and exploring how to balance innovation with accountability.

As OpenAI sets up shop in New Delhi, its journey in India is likely to be closely watched—not just by rivals, but also by startups, enterprises, and policymakers. Will it manage to strike the balance between scaling fast, competing effectively, and staying compliant with India’s evolving legal framework?

One thing is certain: India’s AI story is still being written, and OpenAI’s entry adds an important new chapter. For millions of Indians already experimenting with AI, this could mean faster innovation, more localized tools, and stronger engagement. For the global AI race, it signals that India is not just on the sidelines—it’s quickly moving to the center of the action.