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OpenAI Sees India's Startups as Its Next Growth Engine | AIM
It marks a shift from AI built for consumers to AI built for enterprises -- and for India. When OpenAI began hiring in India, appointing solution architects across Bengaluru and Delhi, it signalled more than a regional expansion. The move reflects a strategy to empower Indian AI startups through localisation and structured product development. India already ranks among the top countries globally for OpenAI-powered service usage, accounting for roughly 9-13% of global ChatGPT traffic. A 2024 survey by the Competition Commission of India found that around 66% of Indian AI startups use generative AI models, showing deep ecosystem adoption. With more than 180,000 recognised startups in the country and over 150 generative-AI ventures having raised $1.5 billion since 2020, India's momentum makes it a natural growth node for OpenAI's enterprise play. It marks a shift
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India's AI adoption growing at record pace, momentum tripled on year: OpenAI's Oliver Jay
India's adoption of AI is growing rapidly, tripling year over year. A young population eager for new technology fuels this momentum. OpenAI sees immense potential in India, noting its engineering talent. The company is opening its first office in New Delhi. India is becoming a key market for AI development and adoption globally. India is witnessing unprecedented growth in AI adoption, with momentum having tripled year over year, OpenAI's Oliver Jay said on Friday. Jay, Managing Director for International Strategy at OpenAI, said the momentum of AI adoption in India is driven by a young population eager to use frontier AI technologies. "The momentum we see in India is incredible. We're seeing tremendous growth. The growth in India we've seen has tripled year over year. And so we're seeing a lot of that growth. "When we think about India, we fundamentally believe that if you build for India, you can build for the world. India is really leading the adoption of the next generation. When you think about the population mix between 18 and 24 years old, that is a booming sector in India," Jay said, speaking at CNBC-TV18's Global Leadership Summit 2025. He highlighted how India's developers and businesses are actively engaged in deploying AI, which has also inspired features like the study mode in ChatGPT, tailored based on Indian student usage. Jay noted OpenAI's decision to make ChatGPT Go free in India to enhance accessibility and affordability. Jay lauded India's engineering talent, stressing the importance of the market not only for India but for the global AI ecosystem. Jay expressed optimism about AI's transformative potential across sectors in India and the prospects for future collaboration with Indian enterprises and policymakers. "My takeaway from being in India for the last couple of days is the talent...The engineering talent is unparalleled... India certainly has tremendous talent, and we're very, very excited to partner with the ecosystem," he said. OpenAI is set to open its first India office in New Delhi later this year, underlining the swift uptake of its AI tools in a market that is ChatGPT's second-largest after the US and among its fastest-growing. PTI
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OpenAI is establishing its first India office in New Delhi and shifting focus to enterprise solutions, capitalizing on India's tripled AI adoption rate and thriving startup ecosystem of over 180,000 companies.
OpenAI is making a significant strategic move by establishing its first India office in New Delhi later this year, signaling the company's commitment to one of the world's fastest-growing AI markets
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. This expansion represents more than just geographical growth—it marks a fundamental shift in OpenAI's approach from consumer-focused AI to enterprise-oriented solutions specifically tailored for the Indian market1
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Source: Analytics India Magazine
The company has already begun hiring solution architects across major Indian cities including Bengaluru and Delhi, demonstrating its commitment to localizing products and services for the Indian ecosystem
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. Oliver Jay, Managing Director for International Strategy at OpenAI, emphasized the company's philosophy: "When we think about India, we fundamentally believe that if you build for India, you can build for the world"2
.India's AI adoption momentum has reached unprecedented levels, with growth rates tripling year-over-year according to OpenAI executives
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. The country now accounts for approximately 9-13% of global ChatGPT traffic, making it the second-largest market for the platform after the United States1
.This rapid adoption is primarily driven by India's young demographic profile, particularly the 18-24 age group, which represents a "booming sector" eager to embrace frontier AI technologies
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. The enthusiasm of Indian users has already influenced OpenAI's product development, with features like the study mode in ChatGPT being tailored based on Indian student usage patterns2
.India's startup landscape presents a compelling opportunity for OpenAI's enterprise strategy. The country boasts more than 180,000 recognized startups, with over 150 generative AI ventures having collectively raised $1.5 billion since 2020
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. A 2024 survey by the Competition Commission of India revealed that approximately 66% of Indian AI startups are already utilizing generative AI models, indicating deep ecosystem adoption1
.This widespread adoption among startups positions India as a natural growth node for OpenAI's enterprise offerings. The company's focus on empowering Indian AI startups through localization and structured product development reflects its understanding of the market's unique needs and potential
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OpenAI executives have consistently praised India's engineering capabilities, with Jay describing the talent as "unparalleled" during his recent visit to the country
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. This recognition of India's technical expertise underscores the strategic importance of the market not just for consumption but also for development and innovation in the global AI ecosystem.To enhance accessibility and affordability, OpenAI has made ChatGPT Go free in India, removing financial barriers that might limit adoption
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. This move demonstrates the company's commitment to democratizing AI access in the Indian market while building a foundation for future enterprise partnerships.Summarized by
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