ChatGPT adoption skyrockets in India, but monetization may be trailing

OpenAI’s Growth in India

U.S.-based tech companies have been leveraging India’s expanding internet user base for years, and OpenAI is no exception. While the AI lab has seen significant growth in the Indian market with its ChatGPT platform, data suggests that monetizing this momentum has been a challenge.

SensorTower reports that Indian users have spent $8 million on ChatGPT subscriptions through in-app purchases since 2023, a fraction of the $330 million spent by U.S. users. One possible reason for this disparity is the lack of localized pricing in India, where the cheapest ChatGPT plan costs over ₹1,700 per month.

Despite the current revenue figures, India remains a crucial market for OpenAI’s growth ambitions. CEO Sam Altman envisions OpenAI as a multi-billion-user platform and sees India’s vast internet user base as a key driver towards that goal.

To further penetrate the Indian market, OpenAI is reportedly exploring a partnership with Reliance Jio, one of the country’s largest mobile carriers.

Meanwhile, ChatGPT continues to gain traction in India, with over 20% of Android app downloads originating from the country this year. The recent introduction of an image generator feature in ChatGPT, which garnered attention for its Ghibli-style art capabilities, has contributed to this growth.

Overall, ChatGPT boasts more than 500 million weekly users worldwide, indicating its widespread popularity and potential for further expansion in India and beyond.