NEW DELHI : OpenAI, the Microsoft-backed creator of ChatGPT, will open its first office in India later this year, underscoring the company’s commitment to one of its fastest-growing markets.

The U.S.-based AI firm has already registered as a legal entity in India and begun hiring a local team. The New Delhi office is expected to be operational before the end of 2025.

India: A Strategic Market

India has emerged as OpenAI’s second-largest user base worldwide, with engagement surging over the past year. Weekly active users have quadrupled, and the country now represents ChatGPT’s largest student community globally. To cater to this growth, OpenAI recently introduced its most affordable subscription plan to date — priced at $4.60 per month exclusively for Indian users.

Commitment to Local Development

“Opening our first office and building a local team is an important step in making advanced AI more accessible across India — and in building AI for India, with India,” said CEO Sam Altman.

The New Delhi hub will focus on localizing AI tools and features, expanding partnerships with developers, enterprises, and government agencies, and embedding Indian consumer insights into OpenAI’s global product roadmap.

Challenges on the Horizon

Despite the optimism, OpenAI faces hurdles in India. Media groups have accused the company of using copyrighted content without authorization to train its models — allegations OpenAI has denied. At the same time, rivals including Google’s Gemini and AI startup Perplexity are intensifying competition by aggressively targeting Indian users, in some cases offering premium features at no cost.

Outlook

Analysts view the New Delhi office as a decisive step in strengthening OpenAI’s position in the world’s largest internet market. A physical presence is expected to help the company navigate regulatory challenges, build consumer trust, and sharpen its competitive edge in a rapidly expanding AI ecosystem.