OpenAI, a leading artificial intelligence research organization, has announced plans to open its inaugural office in India, marking a significant step in its global expansion strategy. This development comes shortly after the company introduced a ChatGPT subscription plan specifically designed for Indian users, underscoring OpenAI’s commitment to engaging with the country’s rapidly growing AI sector.
Strategic Expansion into India
On August 21, 2025, OpenAI revealed its intention to establish a corporate office in New Delhi within the coming months. This move aims to build a local team dedicated to enhancing relationships with Indian partners, government bodies, businesses, developers, and academic institutions. By fostering these connections, OpenAI seeks to tailor its AI products to better meet the needs of the Indian market and develop features specifically designed for local users.
Sam Altman, CEO of OpenAI, emphasized the significance of this expansion: 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 and to build AI for India, and with India.
Building a Local Team
OpenAI has been actively recruiting talent in India to support its expansion efforts. In April 2024, the company appointed Pragya Misra, a former executive at Truecaller and Meta, as its public policy and partnerships lead in India. Additionally, OpenAI enlisted Rishi Jaitly, the former head of Twitter India, as a senior advisor to facilitate discussions with the Indian government on AI policy. These strategic hires are expected to play a crucial role in navigating the complex regulatory landscape and establishing strong partnerships within the country.
India’s AI Market Potential
India, the world’s second-largest internet and smartphone market after China, presents a vast opportunity for AI companies. OpenAI’s decision to establish a presence in India aligns with its goal to tap into this expansive user base. The company faces competition from tech giants like Google and Meta, as well as emerging AI firms such as Perplexity, all vying for a share of the Indian market.
To make its products more accessible, OpenAI recently launched ChatGPT Go, a subscription plan priced at ₹399 per month (approximately $4.75). This affordable offering aims to attract a broader audience in a price-sensitive market. The introduction of ChatGPT Go follows Perplexity’s partnership with Indian telecom giant Bharti Airtel, which provides Airtel’s over 360 million subscribers with access to Perplexity Pro for 12 months.
Upcoming Initiatives
In addition to establishing a physical presence, OpenAI plans to host its first Education Summit in India this month, followed by its inaugural Developer Day in the country later this year. These events are designed to engage with local developers, educators, and businesses, fostering a collaborative environment for AI innovation.
Challenges and Opportunities
While India’s AI market offers immense potential, OpenAI faces challenges in converting free users into paying subscribers. The South Asian market is known for its price sensitivity, requiring companies to develop effective monetization strategies. Additionally, OpenAI must navigate the complexities of integrating with Indian businesses and addressing concerns related to data privacy and intellectual property.
In November 2024, Indian news agency Asian News International (ANI) filed a lawsuit against OpenAI, alleging unauthorized use of its copyrighted news content. This case highlights the importance of establishing clear guidelines and partnerships to ensure compliance with local laws and regulations.
Government Support and Collaboration
The Indian government has been actively promoting AI across various sectors and aims to position the country as a global leader in AI innovation. Ashwini Vaishnaw, India’s IT Minister, expressed support for OpenAI’s expansion: India has all the ingredients to become a global AI leader — amazing tech talent, a world-class developer ecosystem, and strong government support through the IndiaAI Mission.
OpenAI’s collaboration with the Indian government and local institutions is expected to play a pivotal role in advancing AI adoption and development in the country.
Global Expansion Efforts
OpenAI’s expansion into India is part of a broader strategy to establish a global presence. In recent years, the company has opened offices in several international locations, including:
– London, United Kingdom: In June 2023, OpenAI announced plans to open an office in London to advance research and engineering capabilities while collaborating with local communities and policymakers.
– Dublin, Ireland: In September 2023, the company revealed plans to establish its first European Union office in Dublin, focusing on privacy and regulatory compliance.
– Singapore: In October 2024, OpenAI announced the opening of an office in Singapore to serve as a hub for the Asia Pacific region, partnering with AI Singapore to expand access to AI technology.
– Munich, Germany: In February 2025, the company disclosed plans to open an office in Munich, aiming to leverage Germany’s technical expertise and industrial innovation.
These strategic expansions reflect OpenAI’s commitment to engaging with diverse markets and fostering global collaboration in AI development.
Conclusion
OpenAI’s decision to establish an office in New Delhi signifies a major milestone in its efforts to engage with India’s burgeoning AI market. By building a local team, launching region-specific products, and collaborating with government and industry partners, OpenAI aims to make advanced AI technologies more accessible and relevant to Indian users. As the company navigates challenges related to monetization and regulatory compliance, its success in India could serve as a model for future expansions into other emerging markets.
