OpenAI is facing a legal challenge in India as it argues that local courts lack jurisdiction over its U.S.-based business, a stance that legal experts believe is unlikely to succeed. The case, brought by Indian news agency ANI, accuses OpenAI of copyright infringement for allegedly using its content without permission.
India, OpenAI’s second-largest market, has become a key battleground, with media groups—including those backed by billionaires Gautam Adani and Mukesh Ambani—joining ANI in opposition. While OpenAI maintains that its AI models use publicly available data in accordance with fair use principles, it is also contesting jurisdiction, citing its terms of service that specify dispute resolution in San Francisco. The company also argues that it does not maintain servers or data centers in India.
Legal experts, however, suggest that Indian courts are likely to reject OpenAI’s defense. Courts in the country have previously ruled against similar jurisdictional arguments, including in a 2022 case involving Telegram, where the Delhi High Court ruled that server location alone does not exempt a company from Indian law.
If OpenAI wins on the jurisdiction argument, it could avoid facing the copyright lawsuit in India. If it loses, it may be forced to delete ANI’s content from its training data and pay $230,000 in damages. The Delhi court is set to hear arguments on the case in February.
India has a history of holding foreign tech companies accountable to its laws, with past confrontations involving Google, Facebook, and X (formerly Twitter). The Indian government has maintained that global tech firms must comply with local regulations, reinforcing the challenge OpenAI faces in defending its position.
Amid the legal battle, OpenAI CEO Sam Altman and other senior executives are set to visit India on February 5, underscoring the market’s strategic importance.