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ChatGPT’s User Growth Surges in India, Revenue Generation Lags
For several years, technology firms based in the United States have leveraged India’s expansive and expanding internet user base to fuel their development. OpenAI is similarly tapping into this market. While the artificial intelligence laboratory reports India as one of its most rapidly growing markets for ChatGPT, independent data indicates that OpenAI might be encountering difficulties converting this user engagement into substantial revenue.
Revenue Discrepancy Between India and the US
Data from the analytics company SensorTower reveals that consumers in India have spent $8 million on ChatGPT subscriptions via in-app acquisitions since 2023. This figure excludes transactions made through the ChatGPT web application. It is important to note that this sum is significantly smaller than the estimated $330 million spent by users in the United States on ChatGPT in-app purchases, according to SensorTower.
Pricing Disparity Impacts Indian Market Penetration
One significant element contributing to this difference is the absence of localized pricing strategies for India. OpenAI’s most economical ChatGPT subscription plan in the nation is priced at $20 (over ₹1,700) per month, a cost considered prohibitive for digital subscriptions within the Indian market.
OpenAI Acknowledges Indian Market Growth
When approached for comment, OpenAI refrained from disclosing specific details regarding its expansion within India. However, the company directed attention to a recent communication on X (formerly Twitter) by COO Brad Lightcap, asserting India’s position as ChatGPT’s fastest-growing market.
Future Growth Potential in the Indian Digital Landscape
Despite the currently modest revenue figures, India may still become a crucial engine for OpenAI’s future progress. Sam Altman, CEO of the company, has publicly stated his ambition for OpenAI to evolve into a platform with billions of users. Capitalizing on India’s vast population of over 950 million internet users could be instrumental in realizing this objective.
Strategic Partnerships for Expanded Reach
OpenAI seemingly recognizes this potential. Reports suggest the company is pursuing a potential alliance with Reliance Jio, a leading Indian mobile network operator, to broaden the accessibility of ChatGPT to a larger user base.
Organic User Adoption Continues
In the interim, ChatGPT is experiencing continued organic growth throughout India.
App Downloads Driven by Innovative Features
Information from the application tracking firm Appfigures indicates that India accounts for over 20% of all ChatGPT Android application downloads so far this year. A portion of this increase is attributed to the recently launched and updated image generation feature within ChatGPT, which gained considerable popularity for its capacity to generate realistic artwork in the style of Studio Ghibli.
ChatGPT’s Global User Base
For additional context, ChatGPT presently boasts over 500 million active users on a weekly basis worldwide.