U.S.-based tech companies have long focused on India’s expansive and growing internet user base to drive their growth, and OpenAI is no exception. While the AI lab touts India as one of its fastest-expanding markets for ChatGPT, third-party data indicates that OpenAI may be facing challenges in converting this growth into significant revenue. According to analytics firm Sensor Tower, Indian users have collectively spent around $8 million on ChatGPT subscriptions through in-app purchases since the beginning of 2023.
This figure excludes transactions made via the ChatGPT web app. However, it pales in comparison to the $330 million estimated to have been spent by users in the U.S. on similar in-app purchases. A critical factor contributing to this discrepancy could be the absence of localized pricing strategies.
OpenAI’s most affordable ChatGPT subscription in India is priced at $20 per month, which translates to over ₹1,700. This is perceived as quite steep for digital subscriptions in the country. Despite the current revenue challenges, India still has the potential to be a key growth engine for OpenAI.
CEO Sam Altman recently articulated the ambition for OpenAI to evolve into a multi-billion-user platform. With over 950 million internet users in India, this market could significantly bolster their efforts. To further penetrate the Indian market, OpenAI is reportedly exploring a partnership with Reliance Jio, one of the largest mobile carriers in India.
This collaboration aims to enhance the visibility of ChatGPT among users. In the meantime, ChatGPT is seeing organic growth in India. Data from app tracker Appfigures reveals that more than 20% of the Android app downloads for ChatGPT this year have been from India.
This surge has been partially fueled by the recent upgrade to the app’s image generation feature, which became popular for its capability to create Ghibli-style art. Globally, ChatGPT boasts over 500 million weekly users.