India Emerges as OpenAI’s Second Largest Market, Says Sam Altman

CIOTechOutlook Team | Thursday, 06 February 2025, 18:24 IST

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OpenAI Chief Sam Altman said on Wednesday that India is currently the second-biggest market for OpenAI, with the organization having significantly increased its client base in the country over the past year.

Altman, who is now visiting India, stressed that the nation ought to be among the heads of the artificial intelligence transformation. The OpenAI founder is also scheduled to meet PM Narendra Modi.

India is an incredibly important market for AI in general and OpenAI in particular. It is our second-biggest market, and we tripled our users here last year,” Altman said during a fireside chat.

Electronics and IT Minister Ashwini Vaishnaw was also part of the discussion with Altman. Vaishnaw stated, “India is focusing on designing chips, building foundational models, and developing AI applications.”

“Mostly, I’m seeing what people in India are building—the stack, chips, models, and all the incredible applications. India should be doing everything. It’s really quite amazing to see what the country has achieved,” Altman said.

“It’s totally impossible to rival us in training these core models, and we’d advise you not to even attempt it. But it’s your responsibility to try anyway. I genuinely believe in both those aspects. I reckon it’s quite a futile pursuit,” Altman had said.

On building AI models at lower costs, Altman said, “We are now in a world where we have made incredible progress with distillation. We have learned to develop small models, particularly reasoning models. It’s not cheap—it’s still expensive to train them—but this will lead to an explosion of great creativity.”

“India should be a leader in this space, of course,” Altman added.

He explained that there are two perspectives on the cost of AI models. While costs will continue to rise on an exponential curve, the returns on increased intelligence will also grow exponentially.

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