OpenAI Expands to India: New Delhi Office, ChatGPT Go, and Strategic Hires

Reviewed byNidhi Govil

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OpenAI announces plans to open its first office in New Delhi, India, launches ChatGPT Go for the Indian market, and makes key hires as it expands its presence in the world's second-largest internet market.

OpenAI's Strategic Expansion into India

OpenAI, the company behind ChatGPT, has announced plans to establish its first office in India, marking a significant expansion into one of the world's largest and fastest-growing AI markets. The company will set up a corporate office in New Delhi later this year, building on its recent hiring efforts in the region

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Source: Digit

Source: Digit

Key Appointments and Local Team Formation

OpenAI has already begun forming a local team in India, with several strategic appointments:

  • Pragya Mishra, former Truecaller and Meta executive, as public policy and partnerships lead (appointed in April 2024)
  • Rishi Jaitly, former Twitter India head, as a senior advisor for government discussions on AI policy
  • Sheeladitya Mohanty as marketing lead
  • Akash Iyer as social lead

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These appointments underscore OpenAI's commitment to strengthening relationships with local partners, governments, businesses, developers, and academic institutions

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ChatGPT Go: Tailored for the Indian Market

In a move to capture the price-sensitive Indian market, OpenAI has launched ChatGPT Go, a new subscription tier priced at ₹399 per month (approximately $4.75). This makes it the first ChatGPT plan in India aimed at attracting the masses, offering access to GPT-5 at a significantly lower price point than the standard Plus plan

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Source: Tom's Guide

Source: Tom's Guide

Market Potential and Challenges

India represents a crucial market for OpenAI, being the second-largest market for ChatGPT after the United States. The company has reported that weekly active users in India have quadrupled over the past year, and the country boasts the largest population of student users on ChatGPT globally

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However, OpenAI faces several challenges in the Indian market:

  1. Monetization in a price-sensitive market
  2. Competition from local AI startups like BharatGPT and Sarvam AI
  3. Legal challenges from Indian news outlets and book publishers over content usage

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Government Support and AI Ecosystem

The Indian government has shown strong support for AI development, with IT Minister Ashwini Vaishnaw welcoming OpenAI's partnership in advancing the country's AI vision. OpenAI CEO Sam Altman highlighted India's potential as a global AI leader, citing its tech talent, developer ecosystem, and government support through the IndiaAI Mission

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Source: Economic Times

Source: Economic Times

Future Plans and Initiatives

OpenAI has announced several initiatives to deepen its engagement with the Indian market:

  1. Hosting its first Education Summit in India this month
  2. Organizing its first Developer Day in the country later this year
  3. Investing in India's AI ecosystem, including funding research at IIT-Madras and providing free licenses for students

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Competitive Landscape

OpenAI's expansion comes amidst growing competition in the Indian AI market. Google's Gemini and AI startup Perplexity have launched offerings with free advanced plans for many users in the market. Additionally, Perplexity has partnered with Indian telco giant Bharti Airtel to provide access to Perplexity Pro for 12 months to over 360 million subscribers

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As OpenAI deepens its footprint in India, the company aims to leverage the country's rapidly growing AI market and vast user base to further its global AI ambitions. With CEO Sam Altman planning a visit to India next month, the stage is set for OpenAI to play a significant role in shaping the future of AI in one of the world's most dynamic tech markets

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