OpenAI’s boldest marketing bet in India: a likely ₹300 crore Ad war chest

OpenAI, the maker of ChatGPT, is rewriting its playbook in India with an aggressive marketing push. After years of frugality, the AI giant is now ramping up ad spends in one of the world’s fastest-growing digital markets, with estimates pegging its 2025 India allocation between ₹200–300 crore annually. As the AI giant celebrates crossing 4x user growth in India over the past year, the company is placing a massive bet on India led marketing strategy.

The numbers tell a compelling story. India has emerged as OpenAI’s second-largest market globally, with over 111 million ChatGPT downloads compared to 80 million in the U.S. Half of these users are students under 24, representing a generation that will grow up with AI as their digital companion. Yet despite this massive user base, most remain on the free tier, a challenge OpenAI is aggressively addressing through innovative pricing and localisation strategies.

Globally, OpenAI’s advertising spend has historically been conservative. According to COMvergence data, the company spent less than $1 million on U.S. media in 2024, a figure that seems almost quaint for a company generating $13 billion in annualised revenue. However, this frugality is rapidly changing.

OpenAI's Ad rush

The appointment of PHD as OpenAI’s first global media agency of record in August 2025 signals a fundamental shift. The agency already helped OpenAI achieve a 19x spike in U.S. media spending to $19 million in Q1 2025, largely driven by their Super Bowl debut. For India, early indicators suggest a similar scaling trajectory, one that industry insiders believe could reshape the country’s already booming digital advertising market.

Recently, OpenAI appointed Sheeladitya Mohanty as marketing lead for its Indian operations. Mohanty previously held the same designation at Meta AI, India and South Asia, where he worked for 9 years. Before Meta, Mohanty had worked with tech giants like Nokia and Microsoft.

GV Krishnamurthy (GVK), Principal at AiNxtGen, estimates the spend could already be massive. "Based on current market dynamics and competitive pressures, OpenAI's India marketing spend likely ranges from ₹200–340 crore annually in 2025, with projections to reach ₹700–850 crore by 2026–2027."

GVK adds that OpenAI’s push is about more than just ad impressions. “Perplexity’s aggressive partnership with Airtel has changed the dynamics overnight. OpenAI’s response in India isn’t just about pricing—it’s about building infrastructure, forging partnerships, and embedding itself into the daily digital behavior of millions of users.”

According to him, digital channels form the backbone of OpenAI’s India marketing strategy, accounting for nearly 65–70% of the overall mix. Complementing this, out-of-home advertising represents 20–25% of the spend, while experiential marketing and partnerships account for 10–15%.

Ahmed Aftab Naqvi, Global CEO and Co-founder, Gozoop Group said, "The initial outdoor blitz tells us OpenAI is targeting India’s urban early adopters, young professionals, students, and tech savvy decision makers in metros. This is about creating aspiration and credibility at the top end before scaling to the wider market. If we look at comparable global tech launches in India, we can expect spends in the ₹100 to ₹200 crore annual range at entry stage, spread across outdoor for visibility, digital and social for engagement, and influencer and partnership activations to build trust. Television and print may come in later once they move beyond the metros into mass adoption."

India's strategic importance

Somdutta Singh, CEO of Assiduus Global, places OpenAI’s bet in the broader industry context. "India’s advertising market is projected to reach over ₹1.6 trillion in 2025, with digital channels growing at 18%. OpenAI has already localized pricing and is investing in education and developer outreach, which makes India a strategic geography. To establish a strong foothold, it could make sense for OpenAI to allocate in the range of ₹200–300 crore annually, which would be enough to build nationwide awareness, drive adoption of the ₹399 plan, and create sustained presence among students and developers."

Singh’s assessment highlights the dual challenge OpenAI faces—tapping into India’s vast pool of students and freelancers while simultaneously winning credibility among enterprises and developers.

OpenAI’s primary target cohorts in India include students, creators, freelancers, SMBs, startups, enterprise IT and functional leaders, and educators. Students, creators, and freelancers represent the price-sensitive productivity segment, while SMBs, startups, and enterprise leaders bring scale and institutional adoption opportunities.

Yasin Hamidani, Director at Media Care Brand Solutions, outlines the tactical allocation. "The company’s marketing allocation reflects a pragmatic split: 65–75% of resources go into digital performance marketing across YouTube, Meta, and programmatic channels. Around 10–15% is dedicated to creator and influencer collaborations, while 5–10% focuses on campus engagement and ecosystem partnerships. A further 5–10% is invested in regional out-of-home and digital out-of-home advertising in metros and major tech corridors."

Hamidani further breaks down how OpenAI can fuel growth: "If growth is the mandate, I’d recommend ₹100–₹150 crore in Year 1 (or 8–12% of projected India revenue): 50–55% acquisition media, 20–25% education/campus enablement and certifications, 10–15% creator/evangelist programs, 10% regional language content & support, 5% experimentation (new formats, partnerships). This mix balances near-term subscriber growth with durable trust, education, and enterprise pipeline creation."

While much of the conversation has focused on students and creators, some believe OpenAI’s real play lies in enterprise. Ambika Sharma, Founder and Chief Strategist at Pulp Strategy, stresses this. "OpenAI’s planned spends in India are likely to be B2B heavy, anchored in developer programs and early enterprise adoption rather than splashy consumer campaigns. I expect their advertising budget to lean toward digital-first channels like LinkedIn, GitHub sponsorships, enterprise tech media, and targeted performance campaigns aimed at CIOs, CTOs, and product leaders. A significant share will also go into community building, hackathons, and developer evangelism, which function as marketing investments even if they are not traditional ad spends."

She adds, "In my view, for a market like India, OpenAI should be allocating at least 8–10 percent of its projected India revenues into marketing, with B2B-led programs setting the foundation for long-term adoption and consumer engagement layered on top once the ecosystem is primed."

The trajectory is clear—OpenAI is moving from cautious experimentation to full-throttle investment in advertising and partnerships in India. With the domestic ad market growing at double digits, aggressive rivals like Perplexity pushing partnerships, and a massive youth demographic eager to experiment with AI, the company’s multi-crore advertising war chest could prove decisive.

For Altman’s September visit, the stage will be set not just for announcements but for a declaration: India is no longer just OpenAI’s fastest-growing market—it is the frontline of its global growth strategy.

Read More: OpenAI's failure to secure licenses in India shows 'dishonest intent': Publishers tell Delhi HC

Read More: OpenAI to produce in-house AI chip with Broadcom in 2026