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India Becomes OpenAI’s Largest Market

India has become the biggest market for ChatGPT by downloads, overtaking the United States. According to analytics firm Appfigures, the app was downloaded 10.2 million times in India in August 2025, up from 2.5 million a year earlier. Since launch, India has logged 111 million downloads, compared to 80 million in the U.S.

This surge highlights India’s central role in OpenAI’s growth strategy. Despite downloads not always translating to active use, the numbers show how rapidly the company is gaining traction in the country. Rivals such as Google’s Gemini and Anthropic’s Claude lag far behind, with Perplexity emerging as the closest challenger at 6.4 million downloads in August.

Sam Altman’s Bet on India

OpenAI’s CEO Sam Altman visited India earlier this year, meeting with IT Minister Ashwini Vaishnaw to discuss partnerships and innovation opportunities. He later described AI adoption in India as “amazing to watch” and praised the country’s creative use of the technology.

Industry analysts agree. Nick Patience of Futurum Group called India a “strategic move” for OpenAI to gain an edge in the global AI race. With its massive youth population, India is proving to be fertile ground for AI adoption.

Price-Sensitive Market and ChatGPT Go

While downloads are booming, spending habits show India’s price-conscious nature. Indian users have spent $21.3 million on ChatGPT to date, compared with $784 million in the U.S.

To address this gap, OpenAI launched ChatGPT Go in August, a budget-friendly plan priced at 399 rupees ($4.53) per month. The move is designed to make premium AI tools more accessible and lock in users before local competitors gain momentum. Analysts call it a “classic wedge strategy” to dominate a price-sensitive market.

Infrastructure and Talent Investment

OpenAI is also expanding its physical presence. Bloomberg reported that the company is exploring locations in India for a 1-gigawatt data center, part of its Stargate infrastructure program.

Additionally, the company is opening a local office, hiring sales roles, and launching education initiatives. In August, OpenAI announced a program to fund research and provide 500,000 ChatGPT licenses to students and educators across India, strengthening its foothold in the education sector.

Competition and Challenges Ahead

Despite its rapid rise, OpenAI faces stiff competition and potential headwinds in India. Domestic startups like Sarvam AI and Krutrim are emerging challengers, while global tech giants such as Google and Meta are heavily investing in AI solutions tailored to the Indian market.

Legal and political risks also loom. OpenAI is currently in a high-profile court battle with Asian News International (ANI) over alleged copyright infringement, a case that could set precedents for AI regulation in India. On top of that, ongoing U.S.-India trade frictions could complicate matters for American firms expanding in the country.

The Road Ahead

India’s vast, diverse, and multilingual market presents both opportunity and risk. Success for OpenAI will depend on how effectively it can localize its products, manage regulatory hurdles, and compete against fast-rising domestic players.

If it succeeds, India could become OpenAI’s most important growth engine outside the U.S., shaping not only the company’s future but also the direction of AI adoption across Asia.