OpenAI is preparing to establish its first physical presence in India with a new office in New Delhi, underscoring how important the country has become for the company. The Microsoft-backed AI firm confirmed that it has registered a legal entity in India and has already started building a local team.

India has quickly emerged as OpenAI’s second-largest market by user base. Earlier this week, the company rolled out its most affordable monthly plan so far, priced at $4.60, aimed at reaching the nearly one billion people online in the world’s most populous country.

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At the same time, OpenAI is navigating pushback from Indian media houses and publishers, who have accused it of using copyrighted material without approval to train ChatGPT. The company has rejected these allegations.

“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,” OpenAI CEO Sam Altman said in the announcement.

The competitive landscape in India is already heating up. Google’s Gemini and AI startup Perplexity have been aggressively targeting the market, offering premium-grade features for free in an effort to win over local users.

Despite rivals, ChatGPT has seen remarkable traction in India. The company shared new data revealing that the country has the largest student user base on the platform. Weekly active usage has also surged — quadrupling in the past year alone.

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For OpenAI, the New Delhi office represents more than just expansion. It signals a bid to deepen ties in one of the fastest-growing digital economies while adapting to the unique demands of Indian users.