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India seen as OpenAI’s top user hub with GPT-5 boost: Sam Altman
“India is our second-largest market in the world after the US, and will be our largest market worldwide soon as it is growing very fast. We’re keen on bringing our products to the market with a special focus,” Altman told Mint in an interaction on the eve of the company’s launch of its next generational jump in technology.
OpenAI has more than 700 million people using ChatGPT every week globally, Altman said. The company does not detail a region wise break-up of its userbase.
“Indian users are incredible in the way they are integrating AI into their lives, as well as businesses. Now, we’re working with local partners in India to make AI work-ready for everyone, and we are also exploring ways to make AI more affordable for all,” he said.
Generative pre-trained transformer (GPT) was the first mainstream foundational AI model to become popular, when OpenAI launched generative artificial intelligence application, ChatGPT, in October 2022. Since then, OpenAI and ChatGPT became household names, and generative AI disrupted industries around the world.
India is one of the world’s largest markets for the technology, thanks to over 17 million developers and a $280 billion-plus software outsourcing industry.
GPT-5, the foundational model that underpins OpenAI’s innovation, marks the fourth major AI model that the company has unveiled in less than three years: GPT-3.5 upon ChatGPT’s launch, GPT-4 in March 2023, GPT-4o in May last year, and now, GPT-5.
Foundational models are algorithms trained on massive data troves that are capable of understanding common speech, reasoning based on inputs, and responding with what Altman said are “research-grade answers”.
With its young demographics and expertise in IT services, India has emerged as an increasingly important market for global AI firms. Earlier this year, Google made a big splash for India’s developer base with its own foundational model, Gemini 2.5. Last month, the company also held a developer conference in Bengaluru, as Big Tech firms doubled down to capture bigger chunks of the India market.
In February this year, during Altman’s visit, Mint had reported that the company was starting localization of user data in India in anticipation of the upcoming Digital Personal Data Protection Act, 2023.
He said GPT-5 “significantly improves multilingual understanding across 12 Indian languages, including regional ones. India is a priority market for us, and our latest model shows clear gains in major Indian languages.”
Altman added that the latest model is “a significant step along OpenAI’s path to AGI (artificial general intelligence)”. And it comes with the ability to “write good, instantaneous software; one of GPT-5’s defining features will be to write good software applications on demand,” he said.
Until press time, the company was yet to disclose the said performance jumps. GPT-4o, OpenAI’s last major AI model, officially supported 10 Indian languages, including Bangla, Hindi, Punjabi and Tamil.
The launch of GPT-5 comes at a time when India’s ministry of electronics and information technology (Meity) is funding four startups to build native foundational models from scratch. Industry stakeholders, however, believe that the market will continue to remain lucrative for OpenAI, at least for now.
“Let’s not forget that India’s sovereign AI models’ strategy is fairly new, compared to Big Tech’s work on technologies that power the latest AI models. They also have deeper pockets, and it’s not surprising that models like GPT-5 and Gemini will perform well even in many Indian languages,” said Kashyap Kompella, AI analyst and chief executive of technology consultancy firm RPA2AI Research. “India’s work on local AI models and investments should continue with a long-term focus if the ultimate goal for us is to not be dependent solely on AI built outside the country.”
He said GPT-5 will be “watched closely to see if they catch-up in performance on use cases like coding and video”.
“OpenAI is already leading in conversational and reasoning models. Among the general public, the reputational advantage of ChatGPT is unmatched, and we expect OpenAI to be the bellwether in AI,” Kompella added.
Bringing in another perspective, Anushree Verma, senior director analyst, emerging technologies at Gartner, said OpenAI’s India focus “is largely consumer-centric, purely out of India’s population advantage”.
“Enterprises in India are still at a nascent stage of adoption, which is why in terms of monetization potential, India may still be a relatively small market,” she said. “That said, for enterprises adopting AI with vernacular language workloads, the likes of GPT-5 and Gemini-2.5 will offer significantly greater trust and security than a smaller startup. This explains OpenAI’s focus on India, and their expectation of seeing sustained growth here.”
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