OpenAI, the parent company of ChatGPT and backed by Microsoft, will open its first office in India later this year, marking a significant step in its expansion in the country. The new office, set to be located in New Delhi, reflects OpenAI’s commitment to India, which is its second-largest market by user numbers.

The company has already been established as a legal entity in India and has begun recruiting a local team, as confirmed in a statement shared with Reuters. India has become a crucial market for OpenAI, especially after the recent launch of its most affordable monthly subscription plan, priced at $4.60, aimed at tapping into the nearly one billion internet users in the country.

However, OpenAI is facing legal challenges in India, with media outlets and book publishers accusing the company of using their content without permission to train ChatGPT. OpenAI has denied any wrongdoing regarding these allegations.

Sam Altman, CEO of OpenAI, commented on the move, saying, “Opening our first office and building a local team is an important first step in our commitment to make advanced AI more accessible across the country and to build AI for India, and with India.”

Despite the opportunities, OpenAI faces strong competition in the Indian market from major players such as Google’s Gemini and AI startup Perplexity. Both rivals have introduced offerings that provide free access to advanced features, which could challenge OpenAI’s market share.

India has the largest population of student users on ChatGPT, with the number of weekly active users quadrupling in the past year, according to newly released market data by OpenAI.

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