OpenAI To Open First Office In India

OpenAI is setting up shop in India. Backed by Microsoft MSFT, the AI firm will open its first office in New Delhi later this year, Reuters reported, a sign it wants to go bigger in what has quickly become one of its hottest markets. The company has already registered a local entity and started hiring.

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, CEO Sam Altman told Reuters.

The timing isn't random. Earlier this week, OpenAI rolled out its cheapest ChatGPT plan in India at just 399 rupees (under $5) a month. India is now home to the largest base of student users, and weekly actives have quadrupled over the past year, according to OpenAI's internal data.

But competition is fierce. Google's GOOG Gemini and startup Perplexity have already planted flags by offering advanced features free to many users. For OpenAI, a physical office and a cheaper plan look like a one-two punch to grab share in a market too big to ignore.