ChatGPT adoption skyrockets in India, but monetization may be challenging
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.
Monetization Challenges in India
According to analytics firm SensorTower, users in India have spent $8 million on ChatGPT subscriptions through in-app purchases since 2023, excluding purchases made through the ChatGPT web app. This amount pales in comparison to the $330 million spent by U.S. users on ChatGPT in-app. One contributing factor could be the lack of localized pricing for India. OpenAI’s basic ChatGPT plan in India costs $20 (approximately ₹1,700) per month, which is relatively high for the Indian market where digital subscriptions are expected to be more affordable.
Potential for Growth in the Indian Market
Despite the current revenue challenges, India presents a significant growth opportunity for OpenAI. CEO Sam Altman has expressed ambitions for OpenAI to become a multi-billion-user platform. India's internet user base of over 950 million is crucial for achieving this goal. Recognizing this potential, OpenAI is reportedly seeking an alliance with Reliance Jio, one of India's leading mobile carriers, to expand ChatGPT's reach in the country.
Organic Growth and Market Penetration
Despite the monetization challenges, ChatGPT continues to grow organically in India. Data from app tracker Appfigures reveals that over 20% of ChatGPT Android app downloads this year have originated from India. The introduction of the upgraded image generator feature in ChatGPT has also fueled growth, particularly for its ability to create lifelike Ghibli-style art.
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With a global user base of more than 500 million weekly users, ChatGPT remains a popular tool for users worldwide, including those in India.
