ChatGPT Adoption Soars in India: Is Monetization Keeping Pace?

In recent years, U.S.-based tech companies have increasingly turned their focus towards India, leveraging its vast and growing internet user base for expansion. OpenAI, the company behind the popular AI tool ChatGPT, is no exception. Despite claims that India is one of the fastest-growing markets for ChatGPT, recent data indicates that OpenAI might be facing challenges in converting this growth into substantial revenue.

ChatGPT Revenue in India: A Closer Look

According to analytics firm SensorTower, Indian users have spent approximately $8 million on ChatGPT subscriptions through in-app purchases since the beginning of 2023. This figure excludes purchases made via the ChatGPT web application. In contrast, U.S. users have contributed an estimated $330 million in the same timeframe.

Challenges to Revenue Growth

One significant factor impacting OpenAI’s revenue in India is the lack of local pricing. The most affordable ChatGPT subscription plan in India is priced at $20 (over ₹1,700) per month, which many consider expensive for a digital subscription service in the country.

When approached for comments, OpenAI refrained from providing specific details regarding its growth metrics in India. However, they referred to a recent post by COO Brad Lightcap on X, asserting that India is ChatGPT’s fastest-growing market.

The Future Potential of ChatGPT in India

Despite the current revenue challenges, India could potentially become a significant growth engine for OpenAI. CEO Sam Altman has expressed ambitions for OpenAI to evolve into a platform catering to billions of users. Engaging with India’s 950 million internet users could be instrumental in achieving this goal.

OpenAI appears to recognize this potential, as reports suggest the company is exploring a partnership with Reliance Jio, one of India’s largest mobile carriers, to enhance the visibility of ChatGPT among users.

Organic Growth of ChatGPT in India

In the interim, ChatGPT is experiencing organic growth within India. Data from app tracker Appfigures reveals that more than 20% of ChatGPT’s Android app downloads this year have originated from India. A significant portion of this growth can be attributed to the recently launched revamped image generator feature, which has gained popularity for its ability to create stunning Ghibli-style art.

As a point of reference, ChatGPT boasts over 500 million weekly users worldwide, highlighting its global appeal and potential for further expansion.

For more insights on the impact of AI technology in various markets, visit our AI Impact page.

Image Credits: Jagmeet Singh / TechCrunch