OpenAI, Google, and Perplexity have launched an unprecedented fight for AI users in India, rolling out free subscription plans as part of a strategy to expand their user base and gather critical multilingual training data in the world’s second-most populous nation.
India, with 730 million smartphones, is a prime target for tech companies. Mobile users in the country consume an average of 21 gigabytes of data per month, paying one of the lowest rates in the world at 9.2 cents per gigabyte, making free offers highly attractive.
Free AI Plans Boost Usage Across India
To capture India’s price-conscious market:
- Google offered its $400 Gemini AI Pro subscription free for 18 months to 500 million Reliance Jio users starting in November. Recently, it also added India to its discounted “AI Plus” package rollout.
- OpenAI made its ChatGPT Go plan free for a year in India. Previously priced at $54, the plan now allows extended usage of ChatGPT, though with some limitations compared to other paid plans.
- Perplexity launched its Pro tool for free for Airtel users in India, giving unlimited access to its advanced AI research features, globally priced at $200 per year.
Early usage data shows the strategy is working:
- ChatGPT saw daily active users in India jump 607% year-on-year, reaching 73 million, more than double the U.S. daily user base.
- Gemini AI reached 17 million daily users after the Reliance Jio rollout, compared with 3 million in the U.S.
- Perplexity now derives more than a third of its global daily active users from India, up from just 7% last year.
Strategic Aim: Leveraging India’s Linguistic Diversity
While OpenAI’s Pragya Misra emphasized that the free plan reflects a “continued India-first commitment”, AI analysts highlight a strategic benefit: India’s multilingual and dialect-rich population generates diverse data crucial for training advanced AI models.
According to Sagar Vishnoi, co-founder of AI think tank Future Shift Labs:
“Free plans fill gaps in AI training datasets that currently lack information on user behavior patterns in the region.”
The diverse Indian data acts as a stress test, helping AI models master complex communication patterns, enhancing performance globally.
Freebies: A Proven Growth Strategy in India
India has a long history of freebie-driven user acquisition, pioneered by telecom giant Reliance Jio. At its 2016 launch, Jio offered months of free data and voice services, quickly acquiring over 500 million users. Similar strategies were used in media partnerships, such as free cricket streaming with Disney before their India media operations merged.
Current app engagement data shows high usage of AI apps in India:
- ChatGPT: 46% of monthly users access the app daily.
- Perplexity: 20% daily use.
- Gemini: 14% daily use.
For users like Anees Hassan, a PhD student in Hyderabad, the free AI tools are integrated into daily work routines, helping with writing, research, and image generation. Yet, awareness of data privacy concerns remains high, with many users opting out of sharing data for AI training.
Implications for AI Companies
The aggressive India-first AI strategy reflects the country’s importance for global tech firms:
- Rapid user growth in a vast smartphone market.
- Access to diverse linguistic data for AI training.
- Establishing brand loyalty in a highly competitive digital ecosystem.
Experts say the Indian market could become a blueprint for future AI expansion strategies in other emerging economies, combining free access with data-driven model improvement.
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