OpenAI, the parent company of ChatGPT and the leading AI firm, announced that it will establish its first corporate office in India by the end of this year. The office will be located in New Delhi, signaling the company's official entry into one of its fastest-expanding and most significant markets. The announcement was made by OpenAI CEO Sam Altman in an X (formerly Twitter) post, where he appreciated India's "amazing" uptake of AI tools. The decision arrives as India has become ChatGPT's second-largest user base after the United States, with use in the country having quadrupled in the last year. Based on company figures announced on Friday, India's weekly active users have increased fourfold in the last year, driven by students, developers, and businesses embedding AI in education, business, and governance.

Altman, in his press statement, noted the size of India's AI ecosystem. “The level of excitement and opportunity for AI in India is incredible. 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. 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,” Altman said.

Government Hails Move, Refers to It as IndiaAI Mission Milestone

The move was welcomed in strong terms by Union Minister for Electronics and Information Technology Ashwini Vaishnaw, who termed OpenAI’s decision “a reflection of India’s growing leadership in digital innovation and AI adoption.” “With strong investments in digital public infrastructure, AI talent, and enterprise-scale solutions, India is uniquely positioned to drive the next wave of AI-led transformation. As part of the IndiaAI Mission, we are building the ecosystem for trusted and inclusive AI, and we welcome OpenAI’s partnership in advancing this vision to ensure the benefits of AI reach every citizen,” Vaishnaw said in a statement. The IndiaAI Mission, backed by a USD 1.2 billion investment, aims to develop large and small language models tailored for the Indian context, improve AI infrastructure, and foster inclusive adoption across sectors.

Within AI Expansion Plan In India

The wider presence of OpenAI in India is likely to speed up collaborations with schools, businesses, and startups. The company announced that it will host its first Education Summit in India this month, followed later in the year by its first Developer Day in India. These events aim to engage the country’s vibrant developer ecosystem and showcase AI-powered tools designed specifically for local needs. Local businesses are already adopting OpenAI’s technologies for AI-powered agricultural services, recruitment solutions, customer engagement, and governance tools. With an expanded presence, OpenAI plans to craft features and products specifically designed for Indian users, especially regional languages and cost-effective digital solutions.

As part of its India agenda, OpenAI has also launched its cheapest monthly plan for ChatGPT at USD 4.60 (approximately Rs 385). This is much lower than world subscription rates and has been set up to reach almost a billion internet users in India, including students, startups, and small businesses. The company still maintains a free basic plan alongside premium plans with advanced capabilities. India already hosts the world's largest number of student users of ChatGPT, and as such, it is an essential market to fuel future growth for OpenAI.

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While India presents a huge growth opportunity, OpenAI is meeting strong competition from its competitors such as Google's Gemini and rapidly expanding startup Perplexity, both of which have announced their premium services to be free for Indian users. The company is also facing legal hurdles, with news organizations and publishers accusing it of illicitly using copyrighted content to train its models. OpenAI has not admitted wrongdoing but accepted that AI regulation has become complicated in international markets, including India.

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OpenAI’s decision to set up its first office in New Delhi underscores the strategic importance of India in the global AI race. With its large internet population, skilled developer base, and government-backed AI initiatives, India is increasingly being recognized as a key hub for AI research, innovation, and adoption.