India Emerges as OpenAI’s Second Largest Market, User Base Triples in a Year

Sam Altman: India’s AI Market Surges, OpenAI User Base Triples | Business Viewpoint Magazine

India’s Growing Role in AI Adoption

India has rapidly become a significant player in artificial intelligence, emerging as the second-largest market for OpenAI’s ChatGPT. According to OpenAI CEO Sam Altman, the user base in India has tripled over the past year, showcasing the country’s increasing interest in AI-driven tools.

Sam Altman, currently on a world tour, arrived in India on Tuesday night and is scheduled to meet Prime Minister Narendra Modi, IT Minister Ashwini Vaishnaw, and several key stakeholders in the country’s tech ecosystem, including start-ups and venture capitalists. Speaking at a fireside chat, Altman emphasized India’s crucial role in AI’s evolution, noting the country’s robust progress in AI applications, chip design, and foundational model development. Vaishnaw also shared India’s structured approach to AI, which focuses on innovation across multiple layers of the AI stack.

The Race for AI Leadership

During his visit, Sam Altman expressed admiration for India’s advancements in AI and suggested that the country should aim to be at the forefront of the AI revolution. He highlighted India’s potential to lead in the development of AI models, infrastructure, and applications, reinforcing its position as a global AI hub.

Altman’s visit also coincides with the rising prominence of DeepSeek, a foundational AI model developed by a Chinese lab at a significantly lower cost compared to OpenAI’s models. DeepSeek’s success has sparked discussions on the feasibility of creating advanced AI at reduced expenses. Addressing this trend, Altman acknowledged the progress made in distillation techniques, which enable the creation of smaller yet powerful AI models. However, he pointed out that while AI model development costs are expected to decrease over time, staying at the cutting edge will continue to demand substantial investment.

“We are now in a world where we have made incredible progress with distillation. We have learned to do small models and these reasoning models in particular… It’s not cheap, it’s still expensive to train them, but that is going to lead to an explosion of really great creativity. India should be a leader there, of course,” he remarked.

Past Statements and Clarifications

Sam Altman’s previous visit to India had drawn attention due to remarks suggesting that companies outside the U.S., including those in India, might struggle to develop AI models rivaling OpenAI’s. His statement that training large-scale AI models was “totally impossible” for others was met with criticism, with many interpreting it as discouraging competition.

Following the backlash, Altman clarified his stance, stating that his comments had been misinterpreted. He explained that his remarks were specifically in response to a question about competing with OpenAI using a limited budget of $10 million, which he considered unrealistic. Despite this, he encouraged continued efforts in AI development and acknowledged the vast potential for growth in global AI ecosystems.

Sam Altman concluded his discussion in India by reinforcing the need for advanced AI hardware, stating, “The cost of intelligence may decline over time, but the demand for AI hardware will only grow.” His visit underscores India’s vital role in the global AI landscape and highlights the country’s ongoing strides in AI research and development.