India is no longer just another large market for global tech companies. It has suddenly become the frontline of the global race to dominate artificial intelligence. The latest signal came this week, when OpenAI formally set up an Indian unit and announced plans to open its first office in New Delhi later this year.
“The level of excitement and opportunity for AI in India is incredible. India has all ingredients to become a global AI leader, amazing tech talent, a world-class developer ecosystem, and strong government support through the India AI Mission,” said Sam Altman, co-founder and chief executive at OpenAI.
“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’s India push
For OpenAI, the move is not symbolic. India is now ChatGPT’s second largest market globally and one of its fastest-growing. Weekly active users have quadrupled in the past year, with students making up the largest share of the user base anywhere in the world. India also ranks among the top five developer markets on OpenAI’s platform.
The company has already localised its offerings. ChatGPT Go, priced at ₹399 per month, comes with UPI integration to match Indian payment habits and is designed as a low-cost entry point into premium AI. It offers 10 times higher usage limits compared to the free tier and access to the latest GPT-5 model. This tier sits well below ChatGPT Plus at ₹1,999 and Pro at ₹19,900 per month.
OpenAI has also launched initiatives like OpenAI Academy, an AI literacy programme in partnership with the Ministry of Electronics and IT, and expanded Indic language support in GPT-5. A new “Study Mode” is aimed directly at India’s vast student base, guiding learners step by step through academic concepts.
Union IT Minister Ashwini Vaishnaw welcomed the move: “OpenAI’s decision to establish a presence in India reflects the country’s growing leadership in digital innovation and AI adoption. 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.”
Later this month, OpenAI will host its first Education Summit in India, followed by a Developer Day later this year. Hiring for local roles is already underway.
The Jio moment for ChatGPT
Industry watchers say OpenAI is chasing its “Reliance Jio moment.” Just as Jio reshaped telecom with low-cost data, OpenAI is betting that cheap, localised AI subscriptions will let it capture a billion-strong internet market.
Also Read: ChatGPT is eyeing its Reliance Jio moment in India
Nick Turley, OpenAI’s vice president and head of ChatGPT, framed it this way on X: “We just launched ChatGPT Go in India, a new subscription tier that gives users in India more access to our most popular features… All for Rs. 399.”
By pricing in rupees, enabling UPI payments, and lowering the entry point, OpenAI is treating India as both a consumer market and a testbed. Success here could provide the template for scaling AI in other parts of the Global South.
The crowded battlefield
OpenAI is not entering a vacuum. Google, Microsoft, and Perplexity are already entrenched.
Google’s Gemini Premium plan costs ₹1,950 per month and integrates across Gmail, Docs, Meet, and Android, giving it an edge through sheer ecosystem reach. Perplexity AI, founded by an Indian, has positioned itself as a conversational search engine. It recently partnered with Airtel to offer its ₹17,000/year Pro plan free to millions of telecom subscribers. Meanwhile, Elon Musk’s xAI has launched SuperGrok in India at ₹700 per month, steeply discounted from its global price.
The result is a price war. Grammarly slashed its subscription to ₹250 a month. Google is offering free Gemini Pro access for college students. OpenAI’s ₹399 plan is far below its global rates. “We have entered an era where the AI model makers have started racing towards more users (and, therefore, more data) and leadership positions. India, with its 1.4 billion people, is a clear target,” said AI analyst Jaspreet Bindra, to The Hindu.
Where does this leave Indian startups?
For homegrown players, the global rush raises existential questions. Unicorns like Krutrim, and challengers like Sarvam AI and BharatGPT, are building India-first large language models. Others such as Qure.ai, Niramai, Mad Street Den, and Yellow.ai have carved niches in health, fashion, and customer support.
But with global giants offering cheap, powerful models and scooping up top talent, many Indian startups may have to collaborate instead of competing head-on. The race to create foundational models is capital-intensive, and Indian firms face an uphill climb without scale and deep pockets.
The geopolitical layer
India’s emergence as an AI hub is also tied to geopolitics. With China tightening controls on AI models and the US wary of Beijing’s progress, India offers an open, democratic counterweight. For companies like OpenAI, succeeding in India means not just millions of new users but also the chance to shape the next generation of AI developers and researchers.
Government backing
The Indian government has seized on the moment. President Droupadi Murmu, in her Independence Day address, said she hoped India would become “the global hub for AI by 2047.” She pointed to the IndiaAI Mission, which aims to build models suited to India’s needs while ensuring inclusivity.
The government has also positioned AI as part of its wider digital strategy, alongside national highway projects, railway modernisation, and rural internet expansion, painting it as a tool for both governance and growth.
What happens next
The sudden heat around AI in India is a mix of demographics, infrastructure, and timing. With the world’s largest youth population, a thriving developer community, and a price-sensitive but digitally savvy market, India is the proving ground for how generative AI can scale globally.
For users, the price war is a windfall: more choice, lower prices, and faster rollouts of advanced models. For companies, India is no longer a peripheral market. It’s the core battleground where the future of AI adoption may well be decided, in Bengaluru, Hyderabad, and Delhi as much as in Silicon Valley or Beijing.
As Altman put it, “to build AI for India, and with India.”
“The level of excitement and opportunity for AI in India is incredible. India has all ingredients to become a global AI leader, amazing tech talent, a world-class developer ecosystem, and strong government support through the India AI Mission,” said Sam Altman, co-founder and chief executive at OpenAI.
“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’s India push
For OpenAI, the move is not symbolic. India is now ChatGPT’s second largest market globally and one of its fastest-growing. Weekly active users have quadrupled in the past year, with students making up the largest share of the user base anywhere in the world. India also ranks among the top five developer markets on OpenAI’s platform.
The company has already localised its offerings. ChatGPT Go, priced at ₹399 per month, comes with UPI integration to match Indian payment habits and is designed as a low-cost entry point into premium AI. It offers 10 times higher usage limits compared to the free tier and access to the latest GPT-5 model. This tier sits well below ChatGPT Plus at ₹1,999 and Pro at ₹19,900 per month.
OpenAI has also launched initiatives like OpenAI Academy, an AI literacy programme in partnership with the Ministry of Electronics and IT, and expanded Indic language support in GPT-5. A new “Study Mode” is aimed directly at India’s vast student base, guiding learners step by step through academic concepts.
Union IT Minister Ashwini Vaishnaw welcomed the move: “OpenAI’s decision to establish a presence in India reflects the country’s growing leadership in digital innovation and AI adoption. 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.”
Later this month, OpenAI will host its first Education Summit in India, followed by a Developer Day later this year. Hiring for local roles is already underway.
The Jio moment for ChatGPT
Industry watchers say OpenAI is chasing its “Reliance Jio moment.” Just as Jio reshaped telecom with low-cost data, OpenAI is betting that cheap, localised AI subscriptions will let it capture a billion-strong internet market.
Also Read: ChatGPT is eyeing its Reliance Jio moment in India
Nick Turley, OpenAI’s vice president and head of ChatGPT, framed it this way on X: “We just launched ChatGPT Go in India, a new subscription tier that gives users in India more access to our most popular features… All for Rs. 399.”
By pricing in rupees, enabling UPI payments, and lowering the entry point, OpenAI is treating India as both a consumer market and a testbed. Success here could provide the template for scaling AI in other parts of the Global South.
The crowded battlefield
OpenAI is not entering a vacuum. Google, Microsoft, and Perplexity are already entrenched.
Google’s Gemini Premium plan costs ₹1,950 per month and integrates across Gmail, Docs, Meet, and Android, giving it an edge through sheer ecosystem reach. Perplexity AI, founded by an Indian, has positioned itself as a conversational search engine. It recently partnered with Airtel to offer its ₹17,000/year Pro plan free to millions of telecom subscribers. Meanwhile, Elon Musk’s xAI has launched SuperGrok in India at ₹700 per month, steeply discounted from its global price.
The result is a price war. Grammarly slashed its subscription to ₹250 a month. Google is offering free Gemini Pro access for college students. OpenAI’s ₹399 plan is far below its global rates. “We have entered an era where the AI model makers have started racing towards more users (and, therefore, more data) and leadership positions. India, with its 1.4 billion people, is a clear target,” said AI analyst Jaspreet Bindra, to The Hindu.
Where does this leave Indian startups?
For homegrown players, the global rush raises existential questions. Unicorns like Krutrim, and challengers like Sarvam AI and BharatGPT, are building India-first large language models. Others such as Qure.ai, Niramai, Mad Street Den, and Yellow.ai have carved niches in health, fashion, and customer support.
But with global giants offering cheap, powerful models and scooping up top talent, many Indian startups may have to collaborate instead of competing head-on. The race to create foundational models is capital-intensive, and Indian firms face an uphill climb without scale and deep pockets.
The geopolitical layer
India’s emergence as an AI hub is also tied to geopolitics. With China tightening controls on AI models and the US wary of Beijing’s progress, India offers an open, democratic counterweight. For companies like OpenAI, succeeding in India means not just millions of new users but also the chance to shape the next generation of AI developers and researchers.
Government backing
The Indian government has seized on the moment. President Droupadi Murmu, in her Independence Day address, said she hoped India would become “the global hub for AI by 2047.” She pointed to the IndiaAI Mission, which aims to build models suited to India’s needs while ensuring inclusivity.
The government has also positioned AI as part of its wider digital strategy, alongside national highway projects, railway modernisation, and rural internet expansion, painting it as a tool for both governance and growth.
What happens next
The sudden heat around AI in India is a mix of demographics, infrastructure, and timing. With the world’s largest youth population, a thriving developer community, and a price-sensitive but digitally savvy market, India is the proving ground for how generative AI can scale globally.
For users, the price war is a windfall: more choice, lower prices, and faster rollouts of advanced models. For companies, India is no longer a peripheral market. It’s the core battleground where the future of AI adoption may well be decided, in Bengaluru, Hyderabad, and Delhi as much as in Silicon Valley or Beijing.
As Altman put it, “to build AI for India, and with India.”
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