Microsoft Corp. (NASDAQ:MSFT)-backed OpenAI will establish its first India office in New Delhi later this year, targeting its second-largest user market with localized operations and competitive pricing strategies.
Strategic Market Entry
OpenAI has established legal entity status in India and begun local team hiring, according to company statements shared with Reuters on Friday. The artificial intelligence company cited India’s critical market position, where weekly active users have quadrupled year-over-year.
“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,” CEO Sam Altman stated.
Competitive Pricing Initiative
The expansion coincides with OpenAI’s launch of ChatGPT Go, a $4.60 monthly subscription tier exclusive to India. The plan offers 10x higher message limits, 10x more image generations, and 10x more file uploads compared to free tier access.
ChatGPT Go positions between OpenAI’s free offering and $20 ChatGPT Plus subscription, targeting India’s nearly one billion internet users with localized rupee pricing and UPI payment integration.
Market Competition and Legal Challenges
OpenAI faces competition from Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Gemini and AI startup Perplexity, both offering advanced features free to Indian users. The company also confronts legal challenges from news outlets and publishers alleging unauthorized content usage for ChatGPT training.
Growth Metrics and User Base
India represents ChatGPT’s largest student user population globally, according to the report. The market’s strategic importance reflects the broader tech sector’s focus on South Asian expansion, as companies seek growth beyond saturated Western markets.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Meir Chaimowitz on Shutterstock.com
