India is becoming a crucial arena in the global AI race, catalysed by OpenAI's strategic moves. The company is establishing an Indian unit and introducing affordable, localised AI solutions like ChatGPT Go, priced at ₹399 per month, to capture a larger market share. This initiative intensifies competition among tech giants, potentially triggering a price war and posing challenges for local AI startups.
OpenAI's commitment includes opening an office in New Delhi and hiring local talent to strengthen partnerships with government, businesses, and academic institutions. The company is also working with the Indian government to accelerate AI adoption, reflected in the OpenAI Academy, an AI literacy programme in collaboration with the Ministry of Electronics and IT. ChatGPT Go offers access to GPT-5, expanded messaging, faster image creation, and longer memory context.
India's significance to OpenAI is underscored by its status as ChatGPT's second-largest market globally, with a rapidly growing user base. Weekly active users have quadrupled, and India ranks among the top five developer markets on the OpenAI platform. By localising its offerings with UPI integration and affordable pricing, OpenAI aims to tap into India's vast internet market and position the country as a key testbed for AI innovation.
