Perplexity Accelerates in India to Challenge OpenAI’s Global AI Lead
Perplexity's Expansion into India: A Bold Move in the AI Race
Perplexity, the search-focused AI startup, is making significant waves in the global AI landscape by sharpening its focus on India. While OpenAI continues to dominate the U.S. market, Perplexity is pursuing rapid adoption and scale in the world’s second-largest internet market. Their recent strategic partnerships underscore a clear ambition: to compete head-to-head with industry giants by leveraging India’s vast and tech-savvy population.
Strategic Partnership with Airtel
This week, Perplexity announced an exclusive deal with Bharti Airtel, India’s second-largest telecom operator. The agreement grants all 360 million Airtel subscribers a free 12-month subscription to Perplexity Pro, typically valued at $200/year. Notably, no other Indian telco can offer Perplexity’s services under this deal, giving Airtel a unique advantage in the AI arms race.
Global Expansion Through Telco Partnerships
The Airtel alliance is part of a broader global strategy. Perplexity has secured partnerships with over 25 telcos worldwide, including recent deals in Japan with SoftBank and in South Korea with SK Telecom. However, India’s massive market potential and active user base make it uniquely attractive for Perplexity’s ambitions.
Surging Growth Metrics in India
According to Sensor Tower data, Perplexity’s app downloads in India soared by 600% year-over-year in Q2 2025, reaching 2.8 million. For comparison, OpenAI’s ChatGPT saw a 587% increase, tallying 46.7 million downloads in the same period. Active user metrics tell a similar story: Perplexity’s monthly active users (MAUs) in India spiked by 640% year-over-year to 3.7 million, making India its largest market by MAUs. ChatGPT, however, still leads in absolute numbers with 19.8 million MAUs.
Building Local Presence and Partnerships
Perplexity is actively investing in its Indian operations. Earlier partnerships, such as the integration with Paytm, one of India’s largest fintech platforms, have brought AI search to millions through the Paytm app, which boasts over 500 million downloads and plays a key role in the country’s digital payments ecosystem. CEO Aravind Srinivas has also pledged $1 million and five hours per week of his own time to support Indian AI initiatives, reflecting Perplexity’s long-term commitment to the region.
Opportunities and Challenges in Monetization
India’s large, price-sensitive consumer base presents both opportunity and challenge. While user adoption of AI tools is skyrocketing, converting these users into paying subscribers remains difficult. In Q2 2025, ChatGPT’s in-app purchase revenue in India jumped 800% year-over-year to $9 million, while Perplexity has yet to generate notable in-app revenue locally. Globally, ChatGPT earned $773 million in Q2 through in-app purchases, compared to Perplexity’s $8 million.
Looking Ahead: Scaling Users, Building Revenue
Perplexity’s strategy in India is clear: build a massive user base through strategic partnerships and exclusive deals, then work to convert these users into paying customers. While the competition—especially OpenAI and Google—remains fierce, Perplexity’s early momentum and commitment to the Indian market could pave the way for long-term growth and investor interest.
