Anthropic Expands in India as AI Market Heats Up

Anthropic is making a significant push into India's rapidly growing AI market, opening its second Asian office in Bengaluru and reporting that its India revenue has doubled since October 2025. The move comes as competition intensifies in one of the world's largest and fastest-growing markets for AI services.

The San Francisco-based AI company, known for its Claude chatbot, is positioning itself to capitalize on India's developer community, which it describes as "doing some of the most technically intense AI work we see anywhere." This expansion follows similar moves by OpenAI, which recently announced that India has become its second-largest market with 100 million weekly active ChatGPT users.

Strategic Expansion in a Key Market

Anthropic's Bengaluru office represents a strategic bet on India's technical talent pool and growing enterprise demand for AI solutions. The company is also investing in localizing its technology, curating training data for 10 Indic languages to better serve India's diverse linguistic landscape.

This localization effort is crucial in a market where English proficiency varies widely and regional language support can be a significant competitive advantage. By building language-specific capabilities, Anthropic aims to make Claude more accessible to India's massive non-English speaking population.

Revenue Growth Signals Strong Adoption

The reported doubling of India revenue since October suggests rapid adoption of Claude among Indian businesses and developers. While specific figures weren't disclosed, the growth rate indicates that Anthropic is successfully competing against established players like OpenAI and Google in the Indian market.

India's AI market is projected to grow significantly in the coming years, driven by increasing digital adoption, government initiatives like the IndiaAI Mission, and a large pool of technical talent. The country's AI Impact Summit, scheduled for later this month in New Delhi, will likely showcase further developments in the sector.

Competitive Landscape Heats Up

The expansion comes amid intensifying competition in the Indian AI market. OpenAI's recent disclosure about its 100 million weekly Indian users underscores the scale of opportunity. Meanwhile, local players and other international companies are also vying for market share.

Alibaba's recent launch of Qwen 3.5, with claims of being 60% cheaper and eight times better at large workloads, demonstrates how price competition is becoming a key factor in the AI race. This could be particularly relevant in price-sensitive markets like India.

Technical Innovation and Localization

Anthropic's investment in Indic language training data represents more than just market expansion—it's a technical challenge that could yield innovations applicable across its product line. Training AI models on diverse linguistic data requires sophisticated approaches to handling script variations, grammatical structures, and cultural contexts.

The company's focus on India's developer community also suggests a strategy of building strong technical partnerships and fostering innovation ecosystems. This approach could help Anthropic establish deeper roots in the market beyond just offering consumer-facing products.

Broader Industry Trends

Anthropic's India push reflects broader trends in the global AI industry. As the technology matures, companies are increasingly looking to emerging markets for growth, recognizing that the next wave of AI adoption may come from regions with large, young populations and growing digital infrastructure.

The emphasis on localization and technical partnerships also indicates a shift from pure technology development to market-specific solutions. Companies that can adapt their offerings to local needs while maintaining technical excellence are likely to gain advantages in competitive markets.

Challenges and Considerations

While the growth opportunities are significant, Anthropic will face challenges in the Indian market. These include navigating complex regulatory environments, competing with well-funded local and international players, and building trust in a market that has seen various data privacy concerns.

The company's success will likely depend on its ability to deliver localized value while maintaining the technical sophistication that has made Claude competitive in Western markets. Its investment in language capabilities and developer communities suggests it understands these requirements.

As the AI race intensifies globally, Anthropic's expansion into India represents both an opportunity and a test of its ability to compete in diverse markets. The doubling of revenue since October provides early evidence of success, but the long-term challenge will be sustaining growth in one of the world's most dynamic and competitive tech markets.

For the broader AI industry, Anthropic's moves in India signal that the geographic center of AI innovation and adoption is expanding beyond traditional tech hubs. Companies that can successfully navigate this global expansion while maintaining technical excellence will likely emerge as leaders in the next phase of AI development.