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>>India’s AI surge: major tech firms risk revenue to secure leadership in a rapidly expanding market

India’s AI surge: major tech firms risk revenue to secure leadership in a rapidly expanding market

crypthub

about 2 hours ago

Rapid User Growth

India led global generative‑AI app downloads in 2025, accounting for about 20% of worldwide installs and outpacing the US. Installations rose 207% YoY, with September‑October spikes of 320% and 260%. Content‑creation tools made up a large share of the top‑20 apps, reflecting strong demand.

Monetisation Gap

Despite the download surge, India generated only ~1% of in‑app purchase revenue. Revenue fell 22% and 18% in Nov‑Dec 2025, and ChatGPT’s earnings dropped over 30% after a free “ChatGPT Go” rollout. The market’s price sensitivity creates a stark adoption‑versus‑profit divide.

Strategic Shift and Competition

AI firms are moving from free‑user acquisition to paid experiments; OpenAI ended free ChatGPT Go, and Perplexity halted bundled offers with Airtel. ChatGPT still holds 60% of Indian AI revenue and 180 million MAUs, but Google’s Gemini and others are rapidly gaining users.

Emerging Revenue Models

Companies are testing low‑cost subscriptions, telecom bundles, micro‑transactions, regional language features, and enterprise/education deals to suit India’s value‑conscious base. Gradual price‑pressure easing and deeper user integration are expected to lift in‑app revenue over time.