OpenAI to open its first India office: Why is Sam Altman betting big on India?

OpenAI is set to open its first India office in New Delhi by end of this calendar year, the company confirmed on Friday. This comes just weeks after the company unveiled its ChatGPT GO tier priced at ₹399 per month for Indian users, a satchet pricing move to expand its presence in India.

“Opening an office in India reflects OpenAI’s support for the government’s IndiaAI mission and commitment to partnering with the government to build AI for India, with India. It will also allow OpenAI to better serve its users in India, including the millions of students, educators, professionals, and developers who use OpenAI’s tools to learn, be more creative, and solve problems for themselves and others,” the company said in a statement.

Why is OpenAI building an India office?

The India office is being built only now because the country is now ChatGPT’s second-largest market by users, after the US, and one of its fastest-growing markets.

The company's upcoming India office will initially function as a sales and customer engagement hub rather than a research and development centre. Job postings list openings for roles such as Sales Account Director across segments like Digital Natives, Large Enterprises, and Strategic accounts.

Thus, the hiring focus is hybrid roles under the Go-To-Market function. The team being built comprises professionals in Sales, Solutions, Support, Marketing, and Partnerships, to expand the company’s user base.

What does this say about OpenAI’s expansion strategy?

The move comes three months after the company opened its Seoul office, its third in Asia. South Korea currently has the highest number of paying ChatGPT subscribers after the United States. Earlier this year, OpenAI also announced a partnership with Kakao to co-develop AI products tailored for the South Korean market. OpenAI opened its first Asia office in Japan in June last year, followed by Singapore in October the same year.

This reveals a pattern in OpenAI’s international expansion and growth strategy. The fact that Asia seems to be a lucrative region for the company from revenue perspective, the company is strategically expanding its offices in places where the sales team can be built.

“The level of excitement and opportunity for AI in India is incredible. 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,” said Sam Altman, CEO, OpenAI, in a statement.

What is next?

For now, the company said the office location finalising and hiring is underway. The decision to open an AI sales office in New Delhi over Bangalore also hints that the government may have provided the company support and assistance in locating the office.

“OpenAI’s decision to establish a presence in India reflects the country’s growing leadership in digital innovation and AI adoption. With strong investments in digital public infrastructure, AI talent, and enterprise-scale solutions, India is uniquely positioned to drive the next wave of AI-led transformation. As part of the IndiaAI Mission, we are building the ecosystem for trusted and inclusive AI, and we welcome OpenAI’s partnership in advancing this vision to ensure the benefits of AI reach every citizen,” said Shri Ashwini Vaishnaw, Union Minister for Electronics and Information Technology, Railways & Information Broadcasting, said in a statement.

Additionally, Altman’s remarks and recent data that indicates that Indian students form the largest share of OpenAI’s student user base globally, hint at plans to go to schools, colleges, and other educational institutes in the coming months.

“This team will also focus on strengthening relationships with local partners, governments, businesses, developers, and academic institutions,” the company said in a statemenr.

OpenAI already runs the OpenAI Academy, a nationwide AI literacy initiative launched in partnership with India’s Ministry of Electronics and Information Technology.

As the hiring process continues, the company is set to host its first Education Summit in India this month, followed later in the year by its first Developer Day in the country.