OpenAI to open first India office in New Delhi by year-end

OpenAI, the developer behind ChatGPT, will establish its first India office in New Delhi before the end of 2025, the company announced on 22 August. According to Reuters, this marks a strategic push into what is its second-largest user market globally.

The San Francisco-based firm has formally registered an entity in India and is in the process of hiring a local team to liaise closely with the government, businesses, academic institutions and developers, Moneycontrol reported.

Sam Altman, OpenAI’s chief executive, framed the move as both a response to growing demand and a strategic foothold. He said it was “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,” as quoted by Moneycontrol.

India hosts nearly a billion internet users, making it an enormous market for AI services. With localization efforts underway, including the introduction of ChatGPT’s lowest-cost subscription plan—priced at $4.60 per month—India has become a pivotal battleground for global AI providers, Reuters noted.

The cost-competitive pricing strategy appears tailored to India’s price-sensitive consumer base and signals OpenAI’s intent to deepen engagement with Indian users and institutions.

India has emerged as a major market for student users of ChatGPT, reported Reuters, with weekly active users in the country having quadrupled over the past year. That surge underscores India’s potential not just as a user base but as a hotbed for generative AI adoption.

Yet the landscape is highly competitive. Reuters highlighted that OpenAI faces stiff challenges from rivals such as Google’s Gemini and AI startup Perplexity, both of which offer advanced plans free of charge in India.

The limited local presence meant Indian creators and publishers raised legal concerns. According to Reuters, OpenAI is facing lawsuits filed by publishers and news outlets alleging the unauthorised use of their content for training, which the company denies.

For the government, OpenAI’s office is a validation of India’s growing priority in global AI strategy, reinforcing the push for digital infrastructure and domestic capacity-building. The IndiaAI Mission further aligns with this vision, aiming to develop a trusted and inclusive AI ecosystem grounded in local talent and regulatory frameworks.

For OpenAI, New Delhi isn’t just a market entry—it’s a launch pad for navigating India’s regulatory terrain and forging academic and enterprise collaborations. By locating close to policymakers, the firm positions itself to influence and adapt to India’s evolving AI governance—notably amid active lawsuits and demands for data transparency.

The legal disputes pressing OpenAI underscore the fragility of AI’s content practices, especially in jurisdictions sensitive to copyright and data ownership. Meanwhile, competition from entrenched players like Google, and local affordability pressures, may strain OpenAI’s growth plans unless it tailors products with distinct value.