AI for India, with India: OpenAI’s Expansion Signals New Era in Tech Policy

India Becomes OpenAI’s Strategic Hub: What It Means for Students and the Economy

OpenAI, founded in 2015, has rapidly evolved into one of the world’s most influential artificial intelligence companies. Initially established as a non-profit research lab, it transitioned into a capped-profit model and formed a strategic partnership with Microsoft, whose platforms, including Azure and Microsoft 365, now integrate OpenAI’s models extensively. This collaboration has significantly accelerated the global deployment of generative AI tools across sectors. Among OpenAI’s most transformative innovations is ChatGPT, launched in 2022, which currently serves over 500 million weekly users across 156 countries. The platform has attracted more than 2 million paying business subscribers, making it a cornerstone of AI adoption in education, enterprise, and creative industries. Other flagship models include DALL·E, which generates over 4 million images daily, Codex, which powers GitHub Copilot, and Whisper, widely used for transcription and accessibility services.

As of 2025, OpenAI is valued at approximately $300 billion, placing it among the most valuable private technology companies globally. Its projected annual revenue stands at $12.7 billion, reflecting a year-on-year growth of over 240%. The company currently commands around 17% of the global generative AI market, underscoring its leadership in both consumer and enterprise AI solutions. Its mission remains focused on ensuring that artificial general intelligence (AGI) benefits all of humanity, with ongoing research into safety, alignment, and equitable access.
In a major strategic move, OpenAI is set to open a corporate office in New Delhi, establishing a formal presence in one of its most dynamic and promising growth markets. The announcement, shared by Jake Wilczynski, Head of Communications for the Asia-Pacific region, marks a pivotal moment in OpenAI India’s trajectory.

The company has already registered OpenAI India Private Limited and begun hiring to expand its local team. It recently posted three senior sales roles requiring over seven years of experience, with further listings expected. At present, Pragya Misra leads public policy and partnerships in India, having joined the firm last year as its first employee in the country. India has reportedly become ChatGPT’s second-largest market globally, driven by widespread adoption among students, developers, and small businesses. The country now hosts the largest population of student users on the platform. In response to this demand, OpenAI has introduced a more affordable monthly plan priced below $5, alongside its free and premium subscription tiers. Additionally, the company is working on enhanced Indic language support via GPT-5 and has launched Study Mode, a personalised learning feature that has gained popularity among Indian students and educators.

OpenAI’s expansion into India is closely aligned with its commitment to collaborate with the Indian government on the $1.2 billion IndiaAI Mission, which aims to build large and small language models tailored to regional needs. This partnership reflects India’s broader digital ambitions under the Ministry of Electronics and Information Technology (MeitY), and its efforts to foster a trusted and inclusive AI ecosystem. Sam Altman, CEO of OpenAI, has publicly stated that India possesses all the ingredients to become a global AI leader, citing its exceptional tech talent, thriving developer ecosystem, and strong government support.

To deepen engagement with India’s education and technology sectors, OpenAI is planning a series of high-impact events. These include an Education Summit aimed at educators and policymakers, and the company’s first-ever Developer Day in India, scheduled for later this year. These initiatives are expected to strengthen ties with academic institutions, businesses, and the country’s vibrant developer community, including emerging AI startups in Delhi and across the region. The expansion also reflects OpenAI’s intent to help shape early regulatory frameworks in a rapidly evolving technological landscape. India, as the world’s most populous country, presents both immense opportunities and complex challenges for global tech companies. OpenAI’s decision to establish a physical presence is seen as a strategic effort to navigate these dynamics more effectively, particularly in areas such as data governance, ethical AI deployment, and public-private collaboration.

Nevertheless, the company’s growth in India is not without hurdles. OpenAI is currently facing legal scrutiny over alleged use of copyrighted content, and the competitive landscape is intensifying. Rivals such as Google Gemini and Perplexity are offering aggressive pricing and differentiated features, while domestic AI companies in India continue to innovate rapidly. Monetisation remains a strategic concern, as converting India’s vast free user base into paying subscribers presents unique challenges in terms of pricing, localisation, and value delivery. The presence of Microsoft and OpenAI in India further underscores the country’s importance in the global AI race. Their collaborative efforts are expected to influence future innovation, policy development, and capacity building across sectors ranging from education and healthcare to agriculture and governance. The establishment of the OpenAI office in India represents both a recognition of the country’s AI potential and a calculated step to embed the company within one of the world’s fastest-growing digital ecosystems.

Editor’s Note:

OpenAI will set up its first office in India by the end of 2025, choosing New Delhi as its base. This step is not just an expansion, but also a recognition of India’s growing role in the global AI landscape. India is now ChatGPT’s second-largest and fastest-growing market after the United States, and weekly active users have grown four times in the past year. It also has the largest student user base for ChatGPT in the world. India was selected due to its robust tech talent, extensive developer community, and the Indian government's substantial backing through the ₹10,000 crore IndiaAI Mission. Sam Altman, CEO of OpenAI, highlighted India's potential to become a global AI leader, citing its skilled developers and innovative culture as key factors.

OpenAI's expansion into India is set to significantly benefit Indian students by providing more accessible and affordable AI tools. With plans like ChatGPT Go at ₹399 per month, enhanced support for Indic languages, and new initiatives such as the Education Summit and OpenAI Academy, students will gain easier access to advanced AI for learning, creativity, and problem-solving. This move will also stimulate job creation. OpenAI has begun recruiting for positions in sales, partnerships, and support, with plans to establish a local team. This will not only offer direct employment but also foster growth in the education, enterprise, and AI development sectors. India's AI sector is experiencing rapid growth, projected to contribute an additional $500 billion to the GDP by 2025. As one of the top five developer markets globally, the country is actively implementing AI in diverse fields such as agriculture, recruitment, and governance. OpenAI's presence is set to significantly bolster India's digital economy, fostering a synergy between global innovation and local aspirations.

Skoobuzz underscores that OpenAI's entry into India marks a pivotal moment in the nation's AI development, where expansive reach aligns with strategic planning, and groundbreaking innovation fosters widespread inclusion.