India: Perplexity Secret Weapon in the AI Race Against Open AI

AI startup Perplexity is betting on India’s billions to close the gap with Open AI ; one free Airtel subscription at a time.

Shalom Ihuoma
4 Min Read

While Open AI plays the global game, Perplexity is laser focused on India, And that might just be the smartest shortcut in the AI race yet. The San Francisco based AI startup is doing something bold: treating India not just as a “market”, but as the shortcut to outpacing it’s much bigger rival, OpenAI. And the numbers? They are getting hard to ignore. Now, Let’s unpack the play.

 India Just Became Perplexity’s Favorite Child.

If you’re wondering why everyone is talking about India, here is a simple reason: Perplexity’s user base there is exploding. According to TechCrunch, Perplexity recorded 2.8 million installs in India in Q2 2025, A 600% year over year jump. Meanwhile, ChatGPT had a 587% increase globally, with 46.7 million installs. So yes, ChatGPT still leads overall, but Perplexity is sprinting on Indian soil.

Installs are just the start. Perplexity’s monthly active users in India surged 640% year over year, compared to ChatGPT’s 350%. India is now officially Perplexity’s biggest market in terms of user engagement, a pretty big deal. “India has emerged as our largest market. We believe in building AI for the next billion people, and that starts here.” – Aravind Srinivas, CEO of Perplexity TechCrunch

Airtel, Paytm, and a Whole Lot of Freebies

How do you win in India? Simple: Partner with giants. Offer value. Don’t overprice. Perplexity is checking all the boxes. It struck an exclusive deal with Bharti Airtel, India’s second largest telecom provider with over 360 million subscribers. As part of the deal, Airtel is giving every one of those users a free 12 month subscription to Perplexity Pro, which usually costs $200 a year. That’s not a discount it’s a giveaway.

And they didn’t stop there. Perplexity also integrated into Paytm, India’s popular payments and commerce app with over 500 million downloads. This move puts their AI powered answers directly in the hands of everyday Indians. As TechCrunch reports, these partnerships are more than PR stunts, they’re deliberate distribution hacks designed to get Perplexity everywhere Indians already are.

 But Here’s the Catch; Revenue Still Isn’t Catching Up

While Perplexity is pulling in massive user numbers, it’s not raking in dollars yet. In Q2 2025, ChatGPT generated $773 million globally, up 731% year-over-year. Perplexity? Just $8 million, which is solid growth (300% YoY), but still a very distant second place. And in India specifically, where in app revenue for ChatGPT hit $9 million, Perplexity is still warming up the engine (TechCrunch). So yes, user growth is great, but Perplexity still has to figure out how to turn that into actual revenue.

So What’s the Long Game?

The company isn’t just tossing out free subscriptions and hoping for magic. CEO Aravind Srinivas, who was born in India, seems to have long-term plans.

  • He’s hiring local execs.
  • He’s investing $1 million specifically into Indian market development.
  • He’s even spending more of his own time in the region to “build a product that makes sense here,” as per TechCrunch.

The real question: Will those 360 million Airtel users stick around once their free ride ends? That’s the moment of truth. But if Perplexity plays this right, India might not just be a big bet it could be the move that makes them truly global.

Related: Twitch Just Went Vertical; Because Phones Deserves Better Streams Too

Share This Article