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OpenAI, the maker of ChatGPT, has entered into a strategic agreement with the IndiaAI Mission to introduce OpenAI Academy in India. This marks the platform’s first-ever international Academy chapter, and the formal start of OpenAI’s education and artificial intelligence (AI) literacy programs in India. The South Asian nation currently represents the second-largest market for ChatGPT users, highlighting the country’s growing interest in AI tools and applications.

The collaboration aims to expand access to AI education and training across the country. The partnership underscores India’s broader efforts to make advanced technologies more accessible and inclusive as part of its national AI development strategy.

“Together with IndiaAI, we’re working to equip the next generation of students, developers, and mission-driven organizations with the tools and training they need to build responsibly with AI,” the company said.

As part of the agreement, OpenAI will contribute a range of educational materials and resources to support IndiaAI’s “FutureSkills” initiative, as well as the iGOT Karmayogi platform, which is focused on upskilling civil servants. Additionally, OpenAI will offer up to $100,000 in application programming interface (API) credits to 50 fellows and startups selected under the IndiaAI Mission. The initiative seeks to make AI skills accessible to a broad audience nationwide by providing both online and offline training in English and eventually other regional languages.

A key goal of the initiative is to train one million teachers in the practical use of generative AI technologies. OpenAI also plans to organize hackathons across seven Indian states, aiming to engage around 25,000 students.

Jason K., Chief Strategy Officer at OpenAI, reportedly said, “India is emerging as one of the most dynamic hubs for AI innovation. We are thrilled to collaborate with IndiaAI to empower individuals with the skills and confidence to harness AI meaningfully in their daily lives and careers.”

“As demand for AI professionals is expected to reach 1 million by 2026, there’s a significant opportunity and a need to expand AI skills, development and make sure people from every part of India can participate and benefit,” he added.

The initiative comes at a time when OpenAI is navigating a challenging legal landscape in India, where it is attempting to argue that Indian courts lack jurisdiction over its United States-based operations. This position is likely to face scrutiny, especially given past instances where similar arguments by platforms like Elon Musk’s X have been unsuccessful, and tech companies have come under pressure from Indian authorities over regulatory compliance.

OpenAI is embroiled in a legal dispute initiated by the Indian news agency ANI. The case centers on allegations that OpenAI used copyrighted content without authorization, intensifying the legal and regulatory challenges the company faces in one of its most important markets.

Major shift in Sam Altman’s India vision

In February, OpenAI’s chief executive, Sam Altman, held discussions with India’s Minister for Electronics and Information Technology (MeitY), Ashwini Vaishnaw, to explore collaborative opportunities in building an affordable and accessible AI infrastructure in India. The talks focused on areas such as the development of AI models, production of graphics processing units (GPUs), and the creation of practical AI-driven applications tailored to India’s needs.

“Had super cool discussion with Sam Altman on our strategy of creating the entire AI stack – GPUs, model, and apps. Willing to collaborate with India on all three,” Vaishnaw wrote on X after the discussions.

Altman’s India visit marked a notable change in his outlook compared to his statements in 2023, when he expressed skepticism about the ability of countries outside the United States to develop cutting-edge AI technologies. His recent engagement signals a recognition of India’s growing influence in the global AI landscape and its potential to become a key contributor to the next wave of AI advancements.

“India is an incredibly important market for AI in general, for OpenAI in particular. It’s our second-biggest market, and we have tripled our users here in the last year… The country has embraced AI technology and is building the entire stack, from chips to models and applications,” Altman had said in February.

India’s AI market to more than triple to $17 billion by 2027

Altman’s change in outlook toward India is no coincidence—it mirrors the nation’s fast-growing influence in the global technology arena. Thanks to its vast digital population and abundance of skilled engineers, India is increasingly seen as a center for innovation, real-world testing, and large-scale implementation of advanced technologies such as artificial intelligence.

As the world’s second-largest online market, boasting over 900 million Internet users, India presents a powerful combination of widespread mobile connectivity and strong digital infrastructure. This makes the South Asian powerhouse an ideal environment for launching scalable, affordable AI innovations tailored to both local and global needs.

According to a report by the Boston Consulting Group (BCG), India’s domestic AI market is projected to more than triple to $17 billion by 2027, making it one of the fastest-growing AI economies globally. This momentum is fueled by rising enterprise tech investments, a thriving digital ecosystem, and a robust talent base.

“India already has 600,000+ AI professionals, with the number expected to double to 1.25 million by 2027. The country accounts for 16% of the global AI talent pool, second only to the United States, a reflection of both its demographic advantage and STEM (Science, technology, engineering, and mathematics) education pipeline,” the BCG report said.

The supporting infrastructure is also evolving rapidly. By 2025, the world’s most populous country is set to establish 45 new data centers, adding approximately 1,015 megawatts of capacity to its existing network of 152 facilities.

India’s startup landscape is evolving just as quickly. The country is now home to more than 4,500 AI-driven startups, with nearly 40% founded in the past three years, the BCG report said. These companies are bringing innovation to a wide range of industries, including healthcare, agriculture, transportation, and financial services. Many of them are tackling unique Indian problems through AI-based solutions, which are increasingly gaining relevance on a global scale.

“With its talent, scale, infrastructure, and policy tailwinds, India is not just poised to adopt AI, it is positioned to help define how AI shapes the global economy,” the BCG report pointed out.

In March 2024, the Indian government approved a funding package of approximately $1.24 billion for the IndiaAI Mission, to be implemented over a five-year period. This significant investment is designed to accelerate the country’s AI ecosystem, drive innovation, and support entrepreneurial ventures. According to the Union Cabinet—the country’s highest policy-making authority—the initiative is expected to benefit the public and stimulate economic growth at the grassroots level.

The IndiaAI Mission envisions the creation of a robust, inclusive AI ecosystem by addressing key areas such as equitable access to computing power, improved data quality, development of homegrown AI technologies, and fostering a skilled talent pool. It also aims to facilitate collaboration between academia and industry, support startups through risk capital, encourage socially beneficial AI applications, and uphold ethical standards in AI development. These goals are being pursued under seven foundational pillars that guide the Mission’s framework.

As part of its strategy, the Mission is building a scalable AI computing infrastructure tailored to the needs of India’s expanding AI research and startup landscape. This includes setting up an advanced AI compute system equipped with over 18,000 GPUs, made possible through public-private partnerships. Eligible users will be able to access these computing resources at 40% reduced cost under the scheme, significantly lowering barriers to AI development and experimentation.

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