OpenAI’s ChatGPT Struggles to Convert Growth into Revenue in India
For years, U.S.-based tech companies have tapped into India’s vast and increasing internet user base for growth. OpenAI is no exception. But while the AI lab claims that India is one of its fastest-growing ChatGPT markets, third-party data suggests that OpenAI may be struggling to turn that momentum into revenue.
Revenue Struggles
According to analytics firm SensorTower, users in India have spent $8 million on ChatGPT subscriptions through in-app purchases since 2023. That doesn’t include purchases made through the ChatGPT web app. But notably, it’s a fraction of the $330 million SensorTower estimates U.S. users have spent on ChatGPT in-app.
Local Pricing Concerns
One likely factor is the lack of local pricing for India. OpenAI’s cheapest ChatGPT plan in the country costs $20 (more than ₹1,700) per month, which is considered expensive for a digital subscription in India.
OpenAI’s Response
When contacted, OpenAI did not share specific details about its growth in India but pointed us to a recent post on X by COO Brad Lightcap, which claims that India is ChatGPT’s fastest-growing market.
Growth Potential
Low as the revenue might be at present, India may still end up being a major growth driver for OpenAI. The company’s CEO, Sam Altman, recently expressed a desire for OpenAI to become a multi-billion-user platform. Tapping into India’s over 950 million internet users could help bootstrap that effort.
Partnership with Reliance Jio
OpenAI apparently thinks so. The company is reportedly courting an alliance with Reliance Jio, one of India’s biggest mobile carriers, to get ChatGPT in front of more users.
Organic Growth
In the meantime, ChatGPT continues to grow organically in India.
Image Credits:
Image Credits:Jagmeet Singh / TechCrunch
Organic Growth
According to data from app tracker Appfigures, more than 20% of ChatGPT Android app downloads this year so far have been in India. At least a portion of that growth was fueled by the recently released revamped image generator in ChatGPT, which went viral for its ability to create realistic Ghibli-style art.
For context, ChatGPT has more than 500 million weekly users globally.
Conclusion
While OpenAI may be struggling to convert its growth in India into revenue, the country remains a key market for the company. With a revamped image generator and local pricing concerns addressed, OpenAI may be able to capitalize on its momentum and turn India into a major growth driver.
FAQs
Q: What is OpenAI’s current revenue from ChatGPT in India?
A: According to SensorTower, users in India have spent $8 million on ChatGPT subscriptions through in-app purchases since 2023.
Q: Why is OpenAI struggling to convert its growth in India into revenue?
A: One likely factor is the lack of local pricing for India. OpenAI’s cheapest ChatGPT plan in the country costs $20 (more than ₹1,700) per month, which is considered expensive for a digital subscription in India.
Q: What is OpenAI’s goal for ChatGPT?
A: OpenAI’s CEO, Sam Altman, recently expressed a desire for OpenAI to become a multi-billion-user platform. Tapping into India’s over 950 million internet users could help bootstrap that effort.
