Perplexity AI, a U.S.-based artificial intelligence startup, is making a strategic push into India to compete with OpenAI’s dominance in the AI market. The company recently partnered with Bharti Airtel, India’s second-largest telecom operator, to offer 360 million Airtel subscribers a free 12-month subscription to Perplexity Pro, valued at $200. This move aims to rapidly expand Perplexity’s user base in one of the world’s largest internet and smartphone markets.

In the second quarter, Perplexity saw a 600% surge in downloads in India, reaching 2.8 million, and a 640% year-over-year growth in monthly active users, outpacing ChatGPT’s growth rates. However, ChatGPT still leads with 19.8 million monthly active users globally, compared to Perplexity’s 3.7 million.

To strengthen its presence, Perplexity also partnered with Paytm, one of India’s largest fintech platforms with over 500 million downloads, integrating its AI-powered search engine into the Paytm app. CEO Aravind Srinivas has committed $1 million to support AI development in India, signaling the company’s long-term investment in the region.

Despite rapid growth, Perplexity faces challenges in monetizing its user base, especially in India, where consumers are highly price-sensitive. While OpenAI’s in-app purchase revenue reached $773 million in the second quarter, Perplexity’s revenue grew to $8 million. The exclusive Airtel partnership could help convert more users into paying customers.

Perplexity’s focus on India forms part of its broader strategy to rival OpenAI on a global scale. Success will depend on the company’s ability to transform growing user numbers into sustainable revenue and investor confidence.