OpenAI, the Microsoft-backed developer of ChatGPT, will establish its first office in India later this year. The company has registered as a legal entity in the country and begun hiring a local team, with operations to be based in New Delhi.

India is ChatGPT’s second-largest market by user numbers, with nearly a billion internet users nationwide. According to OpenAI, the country now has the world’s largest population of student users on ChatGPT, and weekly active users there have quadrupled over the past year.

Earlier this week, the company launched its cheapest global subscription plan in India at $4.60 a month, aiming to broaden access to its tools.

The move comes as OpenAI faces legal challenges in the country. Several publishers have accused it of using their content without permission to train its models, claims the company has denied.

Competition in India’s fast-growing AI market is intensifying. Google’s Gemini and US startup Perplexity are both offering free access to advanced services in a bid to expand their user base.

OpenAI said its expansion in India reflects both the scale of the market and the rapid adoption of its technology among young users.