OpenAI Sets Up India Office As Global AI Battle Heats Up

India has emerged as the new frontline in the global race for artificial intelligence.

Marking a major step, OpenAI confirmed this week that it has set up a local unit and will open its first office in New Delhi later this year.

Co-founder and CEO Sam Altman described the opportunity as ‘incredible’, citing India’s vast tech talent, thriving developer ecosystem, and government support through the IndiaAI Mission.

He added that building a local team would help “make advanced AI more accessible across the country and build AI for India, and with India.”

The announcement comes as India has become ChatGPT’s second-largest market worldwide, with students forming the biggest share of users.

Weekly active usage has quadrupled in the past year, while India ranks among the top five developer markets for OpenAI.

To suit Indian needs, the company recently launched ChatGPT Go at ₹399 per month, integrated with UPI payments and offering ten times more usage than the free version.

This tier is significantly cheaper than ChatGPT Plus at ₹1,999 and Pro at nearly ₹20,000.

Education and Localisation Efforts

OpenAI is also targeting India’s education sector through initiatives such as OpenAI Academy in partnership with the Ministry of Electronics and IT, expanded Indic language support in GPT-5, and a new Study Mode for learners.

Union IT Minister Ashwini Vaishnaw welcomed the move, noting it reflects India’s growing leadership in AI adoption and aligns with the government’s mission to make AI inclusive and accessible.

However, the field is crowded. Google, Microsoft, Perplexity, and Elon Musk’s xAI are already competing fiercely in India with aggressive pricing and partnerships.

Analysts describe the price war as a ‘Jio moment’ for AI, where affordability drives mass adoption.

For Indian startups like Krutrim, Sarvam AI, and BharatGPT, the entry of global giants poses both opportunities and challenges, with collaboration likely to become essential.

As AI becomes a geopolitical and technological battleground, observers see India as an open, democratic counterbalance to China.

With government backing and a vast youth base, India could decide the future of global AI adoption as the testbed.

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