OpenAI is making a strategic push to transform how Indian businesses access artificial intelligence. The company plans to partner with local firms to make AI tools more affordable across the country.
CEO Sam Altman revealed that India has become OpenAI’s second-largest market globally. The country is also its fastest-growing market after the United States, according to company executives.
The timing aligns with OpenAI’s launch of GPT-5, their most advanced AI model. The new system offers improved reasoning capabilities and enhanced support for Indian languages. This localization could help small businesses and startups integrate AI into daily operations.
“India represents an extraordinary opportunity for AI innovation and application,” Altman said during a recent media briefing. He emphasized that local language support will be crucial for widespread adoption.
Why It Matters Now
The expansion comes as Indian companies increasingly adopt AI solutions. LinkedIn data shows India ranks among the top five nations for AI skills penetration globally. The country witnessed a 190% increase in AI expertise between 2015 and 2017, as reported by industry analysts.
OpenAI’s approach focuses on affordability and accessibility. Altman stressed that cost reduction aligns with the company’s mission to democratize AI access. This strategy could particularly benefit markets with diverse income levels, such as India.
Nick Turley, head of ChatGPT, confirmed that GPT-5 significantly improves multilingual understanding across over 12 Indian languages. “That’s exciting, because India is a priority market for us,” he noted during the same briefing.
Market Impact in India
The initiative addresses growing concerns about AI replacing human jobs. Altman dismissed worries about software engineer job losses, stating there is “no evidence” of such displacement.
“The world wants way more software,” Altman explained. “We have badly underestimated the amount of additional software that the world demands.”
Several Indian IT companies have announced workforce reductions while increasing AI-generated code usage. However, Altman argued that AI enhances productivity rather than eliminating skilled roles.
Research from the Brookings Institution presents a nuanced picture. Higher-educated professionals face greater exposure to AI technologies compared to those with basic education. This suggests AI may reshape high-skill jobs by automating routine tasks.
Strategic Advantage
OpenAI is working with India’s India AI Mission to expand AI education access. The partnership launched OpenAI Academy India, the company’s first international education platform. This initiative aims to train students, developers, educators, and business owners.
Jason Kwon, Chief Strategy Officer at OpenAI, highlighted India’s dynamic AI development landscape. “India is one of the most dynamic countries in the world for AI development, with adoption and innovation accelerating at a remarkable speed,” he said.
The company is also exploring infrastructure partnerships with the Indian government. These discussions involve building local data canter capacity as part of OpenAI’s global ‘OpenAI for Countries’ initiative.
What Business Leaders Should Know
OpenAI is committed to full compliance with India’s emerging AI regulations. Altman acknowledged that different countries are taking unique approaches to AI governance. He emphasized that regulatory cooperation will be essential for safe AI deployment.
The company’s focus on India reflects the country’s dual advantage as both a massive consumer market and a rich talent pool. This positions India as both a testing ground and a development hub for future innovations.
Altman is scheduled to revisit India in September to advance partnership discussions. He plans to strengthen relationships with government and industry stakeholders while assessing the impact of localized initiatives.
For Indian businesses, this expansion could mean more affordable AI tools and better local language support. The initiative may particularly benefit startups and small businesses looking to integrate AI without significant upfront costs.
The move also signals OpenAI’s recognition of India’s growing importance in the global AI economy. As digital adoption continues to increase across the country, businesses may find new opportunities to leverage AI for a competitive advantage.
