OpenAI Introduces Sub-$5 ChatGPT Plan in India Amidst Valuation Discussions

OpenAI has launched a new, more affordable subscription tier, ChatGPT Go, in India, priced at ₹399 (approximately $4.60) per month. This strategic move directly addresses concerns about the cost of AI services in price-sensitive markets, as highlighted by Rohit Mittal's recent social media post. The plan aims to significantly broaden access to advanced AI capabilities in India, which OpenAI CEO Sam Altman has indicated is the company's second-largest market and potentially its largest in the future.

The ChatGPT Go plan offers users 10 times more message limits, increased image generation capabilities, and expanded file uploads compared to the free tier. It also provides twice the memory for more personalized responses. Crucially, the plan supports payments via India’s Unified Payments Interface (UPI) and displays prices in local currency, removing friction associated with international payments. Nick Turley, VP at OpenAI and head of ChatGPT, stated that India is the initial rollout market, with plans to learn from feedback before expanding to other regions.

Mittal's tweet questioned OpenAI's understanding of cost sensitivity in markets like India, stating, "OpenAI hasn't yet seen how India uses anything that's cheap. Or they have seen it and they are willing to bleed." He also pointed out a fundamental difference: "Unlike software, every query costs OpenAI. Fixed cost software could be made cheaper for lower cost countries because the development cost is subsidized by high cost countries." This distinction is critical; large language models (LLMs) like ChatGPT incur computational costs for every interaction, as their operation relies on extensive processing power (GPUs) and memory for each token generated. This differs significantly from traditional software, which typically has a one-time purchase or fixed subscription fee with minimal per-use operational costs.

The launch comes as OpenAI navigates substantial financial growth and market speculation. The company recently closed a $40 billion funding round in March 2025, valuing it at $300 billion. More recently, in August 2025, OpenAI entered talks for a secondary stock sale that could value the company at approximately $500 billion. This rapid increase in valuation underscores the intense investor interest in the AI sector and aligns with Mittal's speculation that OpenAI might be "growing paid users to justify $500 billion valuation."

OpenAI's move into localized, affordable pricing in India also intensifies competition within the country's burgeoning AI market. Rivals like Google's Gemini and Perplexity AI are also vying for market share, with some offering free or subsidized plans for Indian users. This competitive landscape, coupled with the unique economic realities of running advanced AI models, is driving companies to adapt their strategies to foster wider adoption globally.