OpenAI to Launch First India Office in New Delhi

22 August, 2025

OpenAI, the parent company of ChatGPT, is set to open its first office in India later this year, located in New Delhi. The Microsoft-backed firm has already established a legal entity in the country and is hiring a local team. Highlighting India as its second-largest market where weekly active users have quadrupled in the past year, CEO Sam Altman described the move as a crucial first step in making advanced AI more accessible and building AI for, and with, India.

Unpacked:

Why has India become OpenAI’s second-largest market?

India’s large population and rapid digital adoption have fueled demand for AI tools like ChatGPT. The country’s developer ecosystem, educational push for AI, and widespread mobile/internet use have accelerated user growth, making India OpenAI’s second-largest market after the U.S..

What is the IndiaAI Mission and how is OpenAI involved?

The IndiaAI Mission is a $1.2 billion government initiative to boost AI development through infrastructure, education, and local language models. OpenAI is collaborating on this mission, including work on the National Compute Grid and tailored AI solutions for India.

What challenges does OpenAI face in India?

OpenAI faces legal disputes with Indian publishers over alleged misuse of content for AI training, as well as stiff competition from rivals like Google Gemini and Perplexity, which offer free AI tools. Navigating local regulations and building trust are additional hurdles.

How will OpenAI’s office benefit Indian users and businesses?

A local office enables OpenAI to tailor AI products for Indian languages and contexts, collaborate directly with policymakers and developers, and host events like the Education Summit. This facilitates more relevant tools, stronger partnerships, and wider AI accessibility.