^{Photo: The Times of India}

India Becomes OpenAI’s Powerhouse Market
OpenAI is making India a centerpiece of its global strategy as ChatGPT adoption surges across the country. India has become the company’s largest market by downloads, with over 111 million installs of the ChatGPT app since launch—far surpassing the 80 million downloads recorded in the United States, according to analytics firm Appfigures.

In August alone, ChatGPT saw 10.2 million downloads in India, a fourfold increase compared to 2.5 million during the same month last year. This momentum positions India as one of the fastest-growing AI markets globally, outpacing competitors like Google’s Gemini, Anthropic’s Claude, and Perplexity, which managed 6.4 million downloads in the same period.

Why India Matters for OpenAI
India’s massive and youthful population, coupled with its rapid digital adoption, makes it an irresistible market for global tech giants. CEO Sam Altman underscored this during his February visit to New Delhi, where he met with IT Minister Ashwini Vaishnaw to discuss collaboration opportunities. Altman later described India’s AI adoption as “amazing to watch,” praising the country’s surge in creativity and innovation.

Nick Patience, practice lead for AI at Futurum Group, noted that OpenAI’s focus on India is a calculated move to gain a decisive edge in a market that could determine global leadership in AI adoption.

The Challenge of Monetization
While the user base is booming, monetization remains a challenge. Indian users have spent a total of $21.3 million on ChatGPT, a fraction of the $784 million spent by U.S. users. This highlights the country’s price-sensitive market dynamics.

To address this, OpenAI launched ChatGPT Go in August—an affordable 399-rupees-per-month (about $4.53) plan tailored for Indian users. Industry analysts describe this as a strategic “wedge approach” designed to capture the low-cost segment and lock in users before local competitors gain traction.

Building Infrastructure and Talent in India
According to Bloomberg, OpenAI is exploring sites for a massive data center in India with at least 1-gigawatt capacity as part of its Stargate infrastructure expansion. While unconfirmed, such a facility would represent one of the largest AI data investments in the region.

OpenAI has also announced plans to open a local office and is currently recruiting for sales roles. In education, the company rolled out a major initiative to provide 500,000 ChatGPT licenses to students and teachers, alongside funding for AI research, signaling a long-term commitment to cultivating local talent.

Challenges on the Horizon
Despite its progress, OpenAI faces hurdles in India. Domestic startups like Sarvam AI and Krutrim are emerging challengers, while global rivals such as Google and Meta continue to expand aggressively.

Geopolitical tensions between the U.S. and India could also complicate the landscape, especially if New Delhi pushes back against foreign tech dominance. On the legal front, OpenAI is entangled in a copyright dispute with Asian News International (ANI), which accuses the company of misusing its content. The outcome of this case could reshape how copyright laws apply to AI in India.

The Road Ahead
India offers OpenAI unmatched scale and potential, but success will depend on its ability to localize services across languages, price tiers, and cultural needs while navigating political and legal complexities. If OpenAI manages to strike this balance, its expansion in India could serve as a blueprint for its global growth strategy.