upGrad turns to OpenAI to stand out in crowded edtech market

India’s online higher education platform upGrad is doubling down on artificial intelligence as it seeks to differentiate itself in an increasingly competitive and turbulent edtech sector. The company recently announced a partnership with OpenAI to integrate advanced generative AI tools directly into its learning ecosystem, marking one of the most ambitious attempts by an Indian edtech firm to embed frontier AI technology into its curriculum.

The collaboration will see upGrad incorporate OpenAI’s latest tools—including ChatGPT, Codex and the Atlas browsing interface—into its courses, enabling students to interact with AI systems while learning technical subjects such as data science, machine learning and software development. The move indicates a shift in how online education platforms are attempting to deliver value in a market where basic recorded courses have become widely available.

In an exclusive interaction with Fortune India, Anuj Vishwakarma, the chief executive officer at upGrad’s higher education programs division, said the aim is to move beyond passive instruction and create interactive environments where learners can experiment with industry tools while studying.

Why is upGrad betting on OpenAI now?

For upGrad, the partnership reflects a broader shift toward experiential learning in professional education. The company believes that giving learners access to real-world AI tools during coursework could significantly deepen engagement and skill development.

“The idea is to allow learners to practice what they learn immediately within the learning ecosystem,” said Anuj Vishwakarma. “If someone is studying data science or machine learning, they should be able to try those concepts directly using AI tools.”

The rollout will initially focus on mid-career professionals—working engineers, analysts and managers seeking to upgrade their skills in the fast-evolving AI economy. The company expects this segment to drive early adoption before expanding the offering to fresh graduates and other learners.

The integration also hints at a growing demand from employers for practical AI skills rather than purely theoretical knowledge.

Can AI-powered labs change how online courses work?

One of the central ideas behind the partnership is the creation of AI-enabled learning environments where students can interact with generative AI models while completing assignments or projects.

In practical terms, a learner enrolled in a machine learning program could test code using AI coding assistants, explore datasets through conversational AI tools, or conduct research with AI-powered browsing systems—all within the course platform.

Such capabilities could help online programs mimic the kind of hands-on experimentation traditionally associated with campus labs or workplace projects.

Vishwakarma also said that upGrad's model combines multiple elements that many free AI courses lack. Beyond exposure to industry tools, students also receive certifications from partner universities such as the Indian Institutes of Technology, the Indian Institutes of Management, Golden Gate University and Edgewood University.

The combination of academic credentials, structured coursework and AI-driven practice environments is intended to give learners a more comprehensive educational experience.

Is India’s edtech sector entering a new phase after the post-pandemic slump?

The partnership comes as India’s edtech industry continues to recalibrate after the explosive growth witnessed during the COVID-19 pandemic.

When schools and universities shut down during lockdowns, online education platforms experienced unprecedented demand. However, the reopening of physical institutions exposed the limits of pandemic-driven growth. Funding slowed, valuations dropped and several companies were forced to restructure operations.

Some of the sector’s most prominent players undertook layoffs, cut marketing budgets and pivoted toward more sustainable business models.

The industry remains highly competitive, with global platforms such as Coursera and domestic companies like Physics Wallah offering a wide range of online courses and certification programs. Many of these platforms provide free or low-cost learning resources, putting pressure on premium edtech providers to justify their pricing.

In this environment, platforms are increasingly turning to generative AI to create differentiated learning experiences and attract professionals seeking career advancement.

Will hands-on AI learning become the next differentiator?

As artificial intelligence reshapes industries ranging from software development to finance, the demand for AI-related skills is rising sharply. Edtech companies see this as an opportunity to position themselves as gateways to future jobs.

For upGrad, embedding AI tools directly into courses could help bridge the gap between theoretical learning and workplace application. By enabling students to interact with the same technologies used in modern workplaces, the company hopes to produce graduates who are better prepared for AI-driven roles.

The company has already pursued similar collaborations in the past, including partnerships with Microsoft for generative AI training programs that attracted large numbers of enrolments.