Why global tech giants are offering free AI in India

It’s no secret that India is one of the world's hottest digital markets, and now, the global AI giants are making a move that feels almost too good to be true: giving away their premium products for free. This aggressive, no-cost distribution of advanced AI models might be less about charity and more about securing a decisive, long-term grip on what could be the world's largest, data-rich user base.

Global tech companies like OpenAI, Google (Gemini), and Perplexity are strategically offering their advanced Large Language Model (LLM) subscriptions at zero cost to Indian consumers for extended periods.

This distribution model is heavily reliant on their alliances with Indian telecom providers. Google has partnered with Reliance Jio to bundle Gemini Pro access for its nearly 500 million subscribers, leveraging the telecom brand’s reach. Similarly, Perplexity has collaborated with Bharti Airtel for its over 300 million users.

This includes complimentary access to premium services like Gemini Pro (up to 18 months, estimated value $\sim Rs 35,100$), Perplexity Pro (up to 12 months, estimated value $\sim Rs 17,000$), and the ChatGPT Go plan (free up to one year).

The immediate goal is clear: mass user acquisition and habit formation. By embedding premium features like video generation and advanced document analysis into the daily routines of the users, these companies aim for ecosystem lock-in. Once users are dependent on premium capabilities, switching to a competitor or reverting to a basic model might become extremely difficult when the free period ends.

Jio vs Facebook's free basics model

The AI firms’ current strategy closely mirrors the Reliance Jio playbook of 2016. Jio revolutionised the Indian telecom sector by offering nationwide 4G and combining it with an aggressive, extended free pricing model. This prioritised mass adoption and created a ubiquitous dependency on internet connectivity before slowly introducing monetisation, a clear blueprint for the current AI strategy.

Get ready for next level internet speeds and a world of amazing features. Download the MyJio App #JioDigitalLifepic.twitter.com/2fAqMkJfQE

— Reliance Jio (@reliancejio) September 5, 2016

In contrast, the AI companies have meticulously avoided the regulatory pitfall that might have doomed Facebook's Free Basics campaign in 2015. It failed because it violated the principle of Net Neutrality. The service offered ‘zero-rated’ access to a limited set of pre-approved content, meaning the ISP subsidised the data usage for only those select services, thereby discriminating against non-partnered websites. The Telecom Regulatory Authority of India (TRAI) ultimately banned this practice in 2016.

The current AI partnerships, however, tend to have navigated this challenge. The telecom partner is not zero-rating the data; instead, they are offering a free, premium software license or subscription as a bundle benefit to the customer’s existing, standard data plan. The user still pays for data, and all traffic is treated equally.

What these AI giants gain?

Despite the substantial computational costs involved, the investment in offering premium AI services for free is justified by the unique value derived from the Indian user base. The true objective seems to be the proprietary data acquisition and model refinement.

India’s massive and diverse population provides an irreplaceable volume of real-world user behaviour and localised inputs. Global AI companies tend to harvest this data to enhance their models. This influx of high-efficacy, localised data is essential capital expenditure.

India’s AI user demographics

India was the world’s leading adopter of generative AI technology, according to a Deloitte Survey (2024).

While another 2025 Microsoft study found 65% of Indians surveyed have used generative AI, which is more than double the 31% global average for three months.

The adoption engine is the millennial demographic (ages 25-44), which leads with an 84% usage rate (a 15% increase from the previous year).

Indian users are primarily utilising AI for practical applications such as translations, answering questions, increasing workplace efficiency, and assisting students with schoolwork.

This B2C adoption might force future B2B integration. Since this demographic represents the core Indian workforce and enterprise decision-makers, their habitual use of AI for complex tasks can translate into future demand for high-value, enterprise-grade LLM services.

Localised advertising and marketing

To drive mass user adoption, companies are deploying sophisticated, localised marketing strategies.

OpenAI launched an India-first Out-of-Home (OOH) campaign across major metros like Mumbai, Delhi, and Bengaluru. The billboards focus on democratising utility with conversational prompts, such as: “I want to practice my first in-class presentation. Act as my public speaking coach.”

On the other hand, Google’s Gemini launched the ‘House of Gemini’ campaign, which included collaborations with Indian digital creators, like Tanmay Bhat and Bhuvan Bam, to showcase practical, everyday use cases of the product.

Perplexity is also focusing on digital media engagement, collaborating with creators like The Rebel Kid (Apoorva Makhija) and CarryMinati (Ajey Nagar) to demonstrate its research-focused ‘answer engine’ capabilities to the young, digitally native audience.

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Furthermore, OpenAI has actively aligned with the national IndiaAI Mission, and plans include strengthening its presence in India, launching the OpenAI Academy, its first international developer education program, to potentially skill India's AI talent pool.

The dual-track strategy - aggressive free distribution coupled with pro-innovation governance - positions India not just as the largest consumer of AI, but potentially as the indispensable global centre for AI data processing and model refinement.

The current strategy is a sophisticated market land grab, prioritising access to the world’s most diverse and rapidly adopting user base over immediate revenue.

Ironically, NITI Aayog, a public policy think tank of the Government of India, in a report released in September, titled AI for Viksit Bharat - The Opportunity for Accelerated Economic Growth, addressed the country’s potential of becoming “the data capital of the world.”

This might lead to a critical geopolitical and technological question: Will India become the data capital of the world, or is it being used as an expansive, subsidised sampling ground to collect proprietary, localised data that ultimately entrenches foreign global AI leadership?