India gets free premium AI from tech giants: Why?

India has more than 900 million internet users.
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🤖 If you’ve ever been offered a “free” trial only to accidentally pay for it for three years, you’ll know that nothing in the digital world is truly gratis. Now, OpenAI (ChatGPT), Google, and Perplexity AI are replicating that playbook on an epic, national scale: offering millions of Indians a year or more of free, premium AI tools.

This isn’t generosity; it’s a cold, calculated, multibillion pound investment. As one analyst bluntly put it: “The plan is to get Indians hooked on to generative AI before asking them to pay for it.” The digital future, it seems, is being purchased with the promise of high spec freebies.

The Hidden Cost: Data as the New Currency

While millions are getting free access to features like video generation, the real payment is being made in data. India boasts over 900 million internet users and has some of the world’s cheapest data rates. Unlike China, where foreign tech is tightly regulated, India offers an open, competitive digital market. By partnering with telephony giants like Reliance Jio and Airtel, these AI firms are replicating the successful mobile internet boom strategy: bundle the service, build dependency, and then monetise.

India is an incredibly diverse country. Every chat, every nuanced question, provides unique, first hand data that Big Tech cannot get anywhere else. This information is priceless for training and refining generative AI models. India is effectively becoming the world’s most advanced, free AI training ground.

The Regulatory Wild West

This aggressive rollout is possible because India currently lacks a dedicated law governing artificial intelligence. While the Digital Personal Data Protection Act (DPDP) 2023 exists, its implementation rules are still pending, leaving a massive, open window for Big Tech to scale up.

In contrast, the EU and South Korea have already set tough standards for user consent and data governance. For now, India’s “light touch regulation” offers a competitive edge, allowing these companies to build market dominance with ease. Global AI firms are betting that even if just a tiny percentage of the free user base converts to paying subscribers, the resulting millions will make their upfront investment worthwhile.

In the great global AI race, India is not just a market; it’s the prize. Enjoy the free tools, but remember: if the product is free, you are the product.

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