Indian Startup Founders Urge Sam Altman to Make OpenAI More Affordable

As India continues to strengthen its position as one of the world’s leading hubs for technology and innovation, a key question looms over the country’s future in the AI ecosystem: will OpenAI, the company behind the revolutionary ChatGPT, adapt its pricing model to suit the unique needs of Indian developers? This question took centre stage during the meeting between OpenAI CEO Sam Altman and some of India’s top startup founders during his visit to the country on February 5, 2025.

Here TICE brings you inside details of this meeting.

In a closed-door meeting, Altman heard firsthand from some of the most prominent names in the Indian startup ecosystem, who voiced a critical concern: OpenAI’s current pricing is simply too high for the Indian market. While India has become a key growth market for OpenAI, especially with its rapidly expanding user base for ChatGPT and other AI services, the pricing structure of OpenAI’s offerings, including its APIs, is seen as a barrier for mass adoption in the country.

India: A Growing Market, But High Costs Are Holding Back Progress

India is one of the largest developer bases globally, with millions of developers working on innovative projects that leverage cutting-edge technologies, including AI. Yet, despite the rapid rise in AI adoption, many developers feel that OpenAI’s offerings are priced out of their reach. In fact, OpenAI’s high pricing is now being challenged by new competitors in the market, with Chinese AI lab DeepSeek making headlines for offering AI models that rival OpenAI’s top-tier models but at a fraction of the cost. This price gap has spurred Indian startup founders to push for a change.

During the meeting, Paytm founder Vijay Shekhar Sharma pointed out the significant price difference between OpenAI’s offerings and those of emerging competitors like DeepSeek. He shared that some developers have noticed that DeepSeek’s APIs are dramatically more affordable, making it a compelling alternative for those looking to scale their AI-powered applications without breaking the bank. While Altman did not commit to any specific changes, he acknowledged that OpenAI is considering options like open-sourcing some of its tools and exploring ways to reduce costs.

The Demand for India-Specific Pricing Models

One of the central themes of the discussion was the call for India-specific pricing tiers. India has a vastly different economic landscape compared to the US and other Western markets, and many believe that OpenAI’s standard pricing model does not align with local realities. Founders in the meeting, such as Snapdeal co-founder Kunal Bahl, emphasized that for AI technology to achieve widespread adoption in India, the cost of access must be lowered.

“There was a consensus that the pricing is too high currently, and for OpenAI to achieve mass scale adoption, it will need to come down dramatically. We expect to see updates on this in the future,” Bahl shared on social media after the meeting.

Indeed, the need for India-specific pricing was echoed by various attendees, including Aakrit Vaish, advisor to the government’s India AI mission, who spoke to Moneycontrol about the need for localized pricing solutions. Many global tech companies, such as AWS and Google, already offer India-specific pricing to cater to the diverse market in the country. Similarly, OpenAI could benefit from introducing local pricing tiers that would make its products more accessible to a larger pool of developers and businesses in India.

OpenAI’s Role in the Indian AI Ecosystem

India is increasingly being recognized as a key player in the global AI ecosystem, with government-backed initiatives like the India AI Mission gaining momentum. The Indian government has announced plans to develop foundational AI models through a massive Rs 10,738 crore investment, aiming to create homegrown AI solutions that cater to local challenges at a fraction of the cost seen in other countries. As part of this effort, several startups have already been identified as capable of developing large language models (LLMs) tailored to the Indian context.

In this rapidly evolving landscape, OpenAI’s role is becoming ever more crucial. Altman himself made it clear that India is one of the most important markets for OpenAI. With the company’s user base tripling in India over the past year, Altman recognized that the country offers enormous potential for growth. During a fireside chat with India’s IT Minister Ashwini Vaishnaw, Altman emphasized the importance of the Indian market for OpenAI’s global expansion strategy.

At the same time, the government is pushing forward with its own AI initiatives. Vaishnaw noted that India is well-positioned to develop its own AI models at a fraction of the cost seen in other countries, much like the country’s remarkable achievements in space exploration, including the Chandrayaan-2 mission to the Moon.

OpenAI’s India Visit: A Step Towards Collaboration?

Altman’s India visit also comes at a time when the company is facing legal challenges over its use of copyrighted content, adding another layer of complexity to its global operations. However, despite these challenges, OpenAI remains committed to its long-term growth in India. The closed-door meeting with Indian startup leaders marked a significant step in the company’s efforts to understand the local market better and adapt its strategy accordingly.

Notably, OpenAI has yet to announce any new commercial deals or partnerships in India during this visit, unlike in other regions where the company has made headlines by partnering with global giants like SoftBank and Kakao. However, Altman’s visit and the discussions that took place indicate that the company is actively looking for ways to better serve the Indian market.

Looking Ahead: What’s Next for OpenAI and India?

For OpenAI, the challenge now is how to balance its pricing strategy while staying competitive in a rapidly changing global market. The company has a strong reputation in the AI space, but it will need to adapt to local demands in order to maintain its position in key markets like India.

As India continues to accelerate its AI ambitions, with both the government and the private sector investing heavily in the technology, the call for India-specific pricing and more affordable access to AI tools like OpenAI’s cannot be ignored. By addressing these concerns, OpenAI could unlock vast potential in the Indian market, helping developers and startups build the next generation of AI-powered solutions.

In the coming months, all eyes will be on OpenAI as it responds to the growing demand for more affordable and accessible AI solutions in India. Will the company make the necessary adjustments to its pricing strategy? Only time will tell, but the discussions sparked by Sam Altman’s visit have certainly laid the groundwork for a more inclusive and collaborative AI ecosystem in India.

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