OpenAI’s India expansion may threaten homegrown AI dreams

For more than a year, OpenAI’s presence in India rested on one person, Pragya Misra, who ran public policy and partnerships as the firm’s only employee in the country. Now, the US-based AI giant is shifting into high gear in India.

In the last three weeks it has hired a former executive from Coursera to lead its education division in India and APAC, announced plans to set up its first office in the country, and is reportedly preparing to open a large data center.

It has also put up more job listings on LinkedIn for its office, which will be located in Delhi. OpenAI CEO Sam Altman also plans to visit India this month as the company gears up to open this workspace.

OpenAI is “hiring in India to target enterprise clients and stay closer to the government,” an AI startup founder tells Tech in Asia on the condition of anonymity.

The person compares this approach to other US-based AI firms, such as ElevenLabs, that “made AI policy one of their first India hires” before expanding in the country.

“Delhi makes complete sense for OpenAI [for its first India office]. It’s where policy, tech, and business intersect,” says Rahul Agarwalla, managing partner at AI-focused VC firm SenseAI.

India leads in AI adoption globally and is already the second-largest user market for OpenAI after the US.

To tap into this growing user base, OpenAI rolled out its cheapest subscription, ChatGPT Go, at 399 rupees (US$4.5) per month. It has also distributed free credits to students and partnered with educational institutes in India, mirroring what Google once did with Gmail in universities.

OpenAI declined to comment on Tech in Asia’s queries related to its plans in the country.

While India may become the AI firm’s proving ground for the developing world, its launch in the country casts a shadow over the survival of homegrown AI players.

Opportunity or threat?

While some say OpenAI’s India move is an opportunity, others see a looming threat.

Expanding the OpenAI empire