OpenAI's Altman Meets with India IT Minister to Discuss Country's AI Plans

OpenAI CEO Sam Altman recently met with India's IT Minister Ashwini Vaishnaw to discuss the country's ambitious AI plans. The meeting, held on February 5, 2025, marked Altman's second visit to India in two years and highlighted the growing importance of the Indian market for OpenAI. During the fireside chat, Altman praised India's expanding AI ecosystem, stating that the country has embraced AI technology and is building the entire stack, from chips to models and applications.

India's AI Push Gains Momentum
India has been accelerating its AI efforts, unveiling plans to develop its own foundational AI model. IT Minister Ashwini Vaishnaw reaffirmed the country's commitment, stating: "Innovation can come from anywhere in the world, so why shouldn't it come from India?" Last week, the government announced a national AI initiative, which includes:

* A foundational AI model aimed at competing with ChatGPT and DeepSeek R1.
* A national compute infrastructure with 18,693 GPUs to support startups and researchers in building AI applications.
* A government-backed subsidy that would bring down the cost of AI computing in India to less than ₹100 per hour ($1.16) - significantly lower than the $2.5-$3 per hour cost of global AI models.

Minister Vaishnaw noted that India's AI stack will be built on three pillars—GPUs, models, and applications.

OpenAI's Strategic Interest in India
OpenAI's strategic interest in India aligns with its global AI expansion plans. The Indian market presents several opportunities for the company, including:

1. Large and Growing User Base: India is OpenAI's second-biggest market by number of users, after the United States. With over 180 million ChatGPT users globally, and India accounting for 9.08 percent of total users, the country presents a significant user base for OpenAI's AI tools.
2. Talent Pool and Developer Community: India has a vast talent pool and a thriving developer community, making it an ideal location for OpenAI to collaborate with local developers and product leaders to tackle complex AI challenges.
3. AI Ecosystem Development: India is actively building its AI ecosystem, with plans to develop its own foundational AI model, national compute infrastructure, and government-backed subsidies for AI computing. This aligns with OpenAI's interest in fostering growth and innovation in the AI sector.
4. Geopolitical Alignment: OpenAI's engagement with India also aligns with the broader geopolitical AI race. The U.S. government has announced a $500 billion AI infrastructure investment, and OpenAI has formed a joint venture with SoftBank to expand AI applications in Japanese markets. By collaborating with India, OpenAI can maintain a competitive edge in the global AI landscape.

Challenges and Collaboration Opportunities
While India's AI push presents numerous opportunities for OpenAI, the company also faces challenges in the Indian market. OpenAI is currently battling legal issues in India, with multiple lawsuits over copyright concerns. The company has maintained that it only uses publicly available data and has questioned whether Indian courts have jurisdiction over the matter. Addressing these legal concerns and working with the Indian government can help establish a clearer regulatory framework for AI development in India.

Additionally, OpenAI must navigate the competitive landscape, with Chinese AI startup DeepSeek disrupting the industry with low-cost, high-performance AI models. DeepSeek's R1 model, built for under $6 million, has overtaken ChatGPT as the top-ranked free AI app on Apple's App Store. This competition highlights the need for OpenAI to maintain its competitive edge by collaborating with Indian stakeholders and fostering innovation in the AI sector.

In conclusion, OpenAI's strategic interest in India presents numerous opportunities for the company to grow its user base, collaborate with local talent, and maintain a competitive edge in the global AI landscape. By addressing legal concerns and fostering collaboration with Indian stakeholders, OpenAI can help India develop its own foundational AI model and contribute to the growth of the AI ecosystem in the country.