Microsoft (NASDAQ:MSFT)-backed OpenAI will open its first India office in New Delhi later this year, Reuters reported.
OpenAI, which is aiming to push further in its second-largest market by user numbers, has been set up as a legal entity in India and has started hiring a local team, the report added.
OpenAI did not immediately respond to a request for comment from Seeking Alpha.
“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 OpenAI’s CEO Sam Altman in a statement to the news agency.
Earlier this week, OpenAI launched its cheapest yet monthly plan in India for ChatGPT at 399 Indian rupees (under $5).
India has the largest population of student users on ChatGPT, and weekly active users in the country have quadrupled in the past year, said OpenAI in newly shared market data, according to the report.
OpenAI faces tough competition in India from competitors like Alphabet (GOOG) (GOOGL) unit Google’s Gemini and AI startup Perplexity, both of which have launched services that make their advanced plans free for several users in the market.