WIDE LENS REPORT

India Pushes for Affordable AI as OpenAI Faces Pricing Pressure

06 Feb, 2025
1 min read

New Delhi — As artificial intelligence reshapes global economies, India is making a strategic push to ensure its developers and businesses can access AI tools at competitive costs. During OpenAI CEO Sam Altman’s visit to New Delhi this week, leading Indian startup founders pressed for more affordable access to OpenAI’s offerings, highlighting the growing competition from Chinese AI firms offering cheaper alternatives.

In a closed-door meeting, industry leaders urged Altman to introduce India-specific pricing tiers, similar to models offered by Amazon Web Services and Google. “For mass adoption, pricing must come down dramatically,” said Kunal Bahl, co-founder of Snapdeal, in a post on social media platform X. Another founder, who attended the meeting but requested anonymity, emphasized that “hundreds of millions of users” in India need more affordable AI tools.

The discussion comes at a pivotal moment for OpenAI, which has seen its user base in India triple over the past year. The country is now its second-largest market, yet competition is intensifying. DeepSeek, a Chinese AI startup, claims its models rival those of OpenAI, Meta, and Google at a fraction of the cost.

While Altman acknowledged the pricing concerns, he stopped short of making commitments. “Options of open-sourcing and reducing costs are both on the table,” said Vijay Shekhar Sharma, founder of Paytm, after the meeting.

India’s AI ambitions extend beyond affordability. The government is accelerating efforts to build indigenous AI models, recently announcing a ₹10,738 crore ($1.3 billion) India AI Mission. IT Minister Ashwini Vaishnaw, who met with Altman separately, drew parallels to India’s space program. “If we can land a mission on the moon at a fraction of global costs, why can’t we build AI models the same way?” he said.

Despite India’s rapid AI adoption, concerns remain. The finance ministry recently advised government employees against using ChatGPT and DeepSeek over data security risks. Meanwhile, OpenAI is embroiled in legal battles with Indian media houses over copyright infringement claims.

Altman, who also visited Japan and South Korea on his tour, made no major announcements for India, unlike in other markets where OpenAI secured deals with SoftBank and Kakao. However, industry leaders remain optimistic. “India is critical for OpenAI,” said Srikanth Velamakanni, co-founder of Fractal. “The foundation is being laid for deeper engagement.”