Global AI Firms Expand in India with Localization and Strategic Partnerships

• OpenAI and Perplexity are tailoring AI tools for India's unique market needs.
• India’s high digital engagement and massive user base are driving AI adoption despite low app revenues.

On September 26, 2025, Cryptopolitan reported that OpenAI’s ChatGPT and Perplexity are aggressively expanding their operations in India, targeting the country’s large population and high levels of digital engagement. These moves are characterized by localization strategies, unique pricing, and innovative partnerships.

OpenAI launched a dedicated "India Plan" for its ChatGPT service in August, priced at ₹399 (approximately $4.50) per month, significantly lower than its subscription costs in other regions. The company opened its first Indian office in New Delhi and introduced features optimized for the local market, including support for 12 Indian languages and low-bandwidth accessibility enhancements. These measures aim to improve rural user adoption and address infrastructure challenges in less connected areas.

Meanwhile, Perplexity adopted a partnership-driven strategy by teaming up with Airtel, India’s second-largest telecom provider. Airtel’s subscribers now receive free access to Perplexity’s $200 annual Pro service. This collaboration leverages Airtel’s extensive distribution network, enabling rapid penetration into India’s diverse and widespread market.

India’s population of 1.4 billion, coupled with world-leading app usage trends, represents a lucrative growth opportunity for AI technology firms. According to Sensor Tower data, India saw over a 500% increase in AI app downloads during the first part of 2025 compared to 2024, with ChatGPT leading this trend at 125 million installs. Perplexity follows with 26 million downloads, while Google Gemini recorded 23 million. Despite lower app spending in India—under $1 billion in 2024—its high user engagement is driving firms to prioritize expansion, focusing on volume over immediate revenue.

The competitive advantages of global AI companies are amplified by India’s regulatory environment, which has adopted a light-touch approach to encourage innovation. Currently, domestic AI challengers remain limited, giving global players like OpenAI and Perplexity an opportunity to establish themselves as early leaders in the country. By targeting this massive user base with localized offerings and forming strategic alliances, these firms aim to build user habits that could lock in long-term adoption.

As of September 26, 2025, at 16:00 UTC, market data shows Polygon (MATIC) trading at $0.88, with a 4.6% increase in 24-hour trading volume, according to CoinMarketCap. India’s demand for advanced digital infrastructure and technology continues to drive the relevance of these AI expansions.