OpenAI Faces Legal Battle as It Grows Ambitions in India’s AI Market

OpenAI faces a copyright lawsuit from Asian News International amid its push into India. The company plans a New Delhi office and local partnerships to grow in this key market.

Categorized in: AI News Legal
Published on: Aug 25, 2025
OpenAI Faces Legal Battle as It Grows Ambitions in India’s AI Market

OpenAI Faces Copyright Lawsuit Amid India Expansion

OpenAI is currently facing a legal challenge from Asian News International (ANI), which alleges that OpenAI scraped copyrighted news content without authorization. This lawsuit raises significant copyright concerns at a time when OpenAI is actively working to strengthen its presence in India.

Strategic Moves in the Indian Market

In April 2024, OpenAI appointed Pragya Mishra, previously with Aarav Unmanned Vehicles, as head of public policy and partnerships for India. This signals a clear commitment to building local ties. The company plans to open its first office in New Delhi within the coming months, aiming to embed itself within the country’s fast-growing AI ecosystem.

India’s status as the world’s second-largest internet and smartphone market, trailing only China, makes it a critical region for AI companies. OpenAI recently introduced a ChatGPT subscription plan priced at ₹399 (approximately $4.75) per month. This pricing strategy targets converting free users into paying customers, thereby increasing active user engagement.

Adapting AI for the Indian Context

To align its offerings with local needs, OpenAI intends to gather feedback directly from Indian users. The company is focusing on developing features and tools that resonate culturally and meet specific market demands. As CEO Sam Altman stated, “If we can’t show this is a beneficial use of AI, we’re in trouble.”

Altman also emphasized the importance of local presence: “Opening our first office and building a local team is an important first step in our commitment to make advanced AI more accessible across the country and to build AI for India, and with India.”

Government Support and Industry Context

OpenAI’s expansion coincides with strong government backing. Ashwini Vaishnaw, India’s Minister of Electronics and Information Technology, welcomed OpenAI’s entry, highlighting India’s leadership in digital innovation and AI adoption.

Vaishnaw noted, “As part of the IndiaAI Mission, we are building the ecosystem for trusted and inclusive AI, and we welcome OpenAI’s partnership in advancing this vision to ensure the benefits of AI reach every citizen.”

Global Expansion and Competitive Environment

Last month, OpenAI also launched offices in Japan and Singapore, marking significant steps in its global growth strategy. Establishing a foothold in India offers access to a large pool of technological talent and a vibrant developer community.

However, OpenAI faces intense competition from established tech giants such as Google and Meta, alongside emerging AI startups like Perplexity. Successfully operating in this environment will require careful product development and user engagement strategies tailored to the Indian market.

Legal professionals monitoring this case should note the broader implications of copyright law enforcement on AI companies expanding internationally. The outcome of ANI’s lawsuit could influence content use policies and data sourcing practices in AI development.

For legal experts interested in AI and intellectual property intersections, exploring specialized AI training resources can provide valuable insights. Relevant courses are available at Complete AI Training.


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