Why Anthropic Chose India for Its Next Major Office

The Bengaluru office will serve as Anthropic’s hub for enterprise partnerships, applied AI research, and developer community engagement across India. Irina Ghose, Managing Director of Anthropic India, said the country “represents one of the world’s most promising opportunities to bring the benefits of responsible AI to vastly more people and enterprises.” The company cited India’s deep pool of technical talent, mature digital infrastructure, and a growing ecosystem of AI-first startups and technology companies as key reasons for the expansion.

Anthropic’s run-rate revenue in India has doubled since the company first announced plans for an India presence in October 2025. Key partnerships already announced include a collaboration with Infosys to deploy Claude models in the telecommunications sector, as well as a project with Air India to use Claude Code for faster internal software development.

India’s Growing Importance to Global AI Companies

Anthropic’s India entry follows a wave of investments by competing AI laboratories. At the India AI Impact Summit held in February 2026, attended by over 250,000 visitors, OpenAI CEO Sam Altman revealed that India accounts for more than 100 million weekly active ChatGPT users — second only to the United States. Altman also noted that Indian students represent the largest group of ChatGPT users globally for educational purposes.

Google DeepMind, AMD, and Nvidia have all deepened their India commitments at the same summit. AMD announced a partnership with Tata Consultancy Services (TCS) to develop rack-scale AI infrastructure, while the Indian government earmarked $1.1 billion for a state-backed venture capital fund targeting AI and advanced manufacturing startups. The launch of BharatGPT-2, India’s own sovereign AI model, underscored the country’s dual strategy of welcoming global players while building domestic capabilities.

Enterprise AI Adoption Accelerates Across Sectors

Beyond the headline partnerships, the broader Indian enterprise sector is rapidly adopting AI tools. Anthropic is working with Karya and the Collective Intelligence Project to build performance evaluations for locally relevant tasks in agriculture and law, in partnership with Indian nonprofits including Digital Green and Adalat AI. These evaluations will test Claude’s capabilities across Indic languages and domain-specific use cases.

The AI Impact Summit signalled a clear shift from prototypes to real-world deployment across Indian industry. HCL CEO Vineet Nayyar warned that Indian IT companies must focus on profitability rather than job creation as AI reshapes the services sector. Meanwhile, Bengaluru-based C2i raised $15 million in Series A funding to build power solutions for AI data centres, reflecting the infrastructure demands of the AI boom.

What This Means for India’s AI Ecosystem

The entry of Anthropic strengthens Bengaluru’s position as a global AI hub alongside Silicon Valley and London. For Indian developers, it means easier access to frontier models, localised support, and more enterprise-grade AI tools from leading companies. For the broader Indian technology sector, it signals that the race for AI dominance now runs through India as much as it does through the United States or China.

Analysts expect further announcements from global AI firms targeting India in the coming months, particularly around regional language models, healthcare AI, and government digitisation projects. The domestic sovereign AI startup landscape — led by companies like Krutrim and Sarvam AI — will also benefit from the increased competition and investment flowing into the sector.

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India took a decisive step in the global artificial intelligence race on 24 March 2026 with the launch of BharatGPT-2, the country’s most advanced sovereign large language model. Developed by a consortium led by IIT Bombay, IIT Madras and Reliance Jio’s AI division under the government’s IndiaAI Mission, the model supports all 22 scheduled languages of the Indian Constitution and has been benchmarked as competitive with GPT-4-class models on multilingual tasks.

The launch, held at Vigyan Bhawan in New Delhi with IT Minister Ashwini Vaishnaw presiding, positions India alongside the United States, China, France and the UAE as nations investing in sovereign AI capabilities — systems trained on domestic data, hosted on domestic infrastructure and designed to address local needs.

Technical Architecture: Built for Bharat

BharatGPT-2 is a 340-billion-parameter model trained on a curated dataset of 12 trillion tokens spanning English, Hindi, Tamil, Bengali, Marathi, Telugu, Gujarati and 16 other Indian languages. Unlike its predecessor, BharatGPT-1, which was primarily an academic research model, BharatGPT-2 has been optimised for commercial deployment with an enterprise API already available to government agencies and approved startups.

The model’s training infrastructure was hosted on the AIRAWAT supercomputing cluster at C-DAC Pune, supplemented by 4,000 NVIDIA H100 GPUs provided through the IndiaAI Compute Mission. Total training costs are estimated at Rs 800 crore, funded through a combination of government grants, Reliance’s investment and academic research budgets — a fraction of what OpenAI and Google spend on comparable models.

“The key innovation is not just model size but data curation,” explained Professor Pushpak Bhattacharyya of IIT Bombay, who led the linguistics team. “We built specialised tokenizers for each language family — Indo-Aryan, Dravidian, Tibeto-Burman — rather than treating all languages as English with different scripts.” This approach to fintech innovations transforming India and other sectors enables more natural language understanding in regional contexts.

Real-World Applications Already in Deployment

BharatGPT-2 is not just a research showcase. Several government departments have already begun integrating the model into citizen-facing services. The Unified Payments Interface helpline now uses a BharatGPT-2-powered chatbot that can resolve common transaction disputes in Hindi, Tamil and Bengali without human intervention, reducing average resolution time from 48 hours to under 10 minutes.

The Ayushman Bharat Digital Health Mission has deployed a BharatGPT-2 module that translates medical reports between languages, enabling doctors in Kerala to read diagnostic notes written by colleagues in Rajasthan. The agriculture ministry is piloting a voice-based crop advisory service that allows farmers to ask questions in their local dialect and receive science-backed recommendations drawn from ICAR research databases.

In the private sector, Infosys and Wipro have signed early-access agreements to integrate BharatGPT-2 into their client service platforms, potentially reducing their dependence on OpenAI and Anthropic APIs. Flipkart is testing the model for customer support in regional languages, reporting a 30 per cent improvement in first-contact resolution rates compared to English-only models.

The Startup Ecosystem’s AI Surge

India’s AI startup ecosystem, already vibrant, has received a significant boost from the government’s commitment to sovereign AI. According to data from Tracxn, Indian AI startups raised USD 2.3 billion in the first quarter of 2026, a 78 per cent increase over Q1 2025. Bengaluru-based Krutrim, founded by Ola CEO Bhavish Aggarwal, secured a USD 500 million Series B in February, making it India’s first AI unicorn valued at over USD 3 billion.

Sarvam AI, a Bengaluru startup focused on building open-source Indian language models, has attracted attention from Y Combinator and Andreessen Horowitz for its Indic voice AI platform that powers call centre operations in 11 languages. Meanwhile, Hyderabad-based AI Health Highway is using custom fine-tuned models to screen chest X-rays at primary health centres in Telangana, processing over 5,000 scans daily.

The growth extends across India’s telecom and 5G expansion, where AI is being deployed for network optimisation, predictive maintenance and personalised content delivery at scale.

Geopolitical Dimensions: Data Sovereignty and AI Arms Race

The push for sovereign AI is as much about geopolitics as it is about technology. India’s Digital Personal Data Protection Act, fully enforceable from mid-2026, requires that sensitive personal data processed by government AI systems be stored and processed within India. BharatGPT-2’s entirely domestic hosting infrastructure — spread across data centres in Pune, Hyderabad and Chennai — satisfies this requirement.

The model also addresses concerns about cultural bias in Western AI systems. Testing by IIT Delhi’s AI fairness lab found that GPT-4 and Claude struggled with culturally specific queries — misidentifying Indian festivals, providing incorrect legal information about Indian laws and defaulting to Western dietary recommendations. BharatGPT-2, trained on curated Indian datasets, scored 40 per cent higher on cultural accuracy benchmarks.

India’s approach has drawn interest from other developing nations. Nigeria, Indonesia and Brazil have all expressed interest in the IndiaAI Mission’s methodology, viewing it as a template for building sovereign AI capabilities without the USD 10-billion-plus budgets of American tech giants. The record research output from Indian institutions is providing the academic foundation for this global leadership role.

Challenges: Compute, Talent and Adoption

Despite the momentum, significant challenges remain. India’s total AI compute capacity, while growing, is still roughly one-tenth of what the United States possesses. The IndiaAI Compute Mission aims to bridge this gap by deploying 10,000 GPUs for public research by 2027, but the global GPU shortage and export controls on advanced chips create supply uncertainties.

Talent retention is another concern. India produces over 500,000 AI and machine learning graduates annually, but a significant proportion — estimated at 30 per cent of top-tier talent — migrate to the US, UK or Singapore for higher salaries and more advanced research environments. The BharatGPT-2 project has helped retain some researchers by offering competitive compensation and the chance to work on a nationally significant project, but the brain drain remains structural.

Adoption among India’s 63 million SMEs is the final hurdle. While large enterprises can integrate BharatGPT-2 through APIs and dedicated teams, small businesses need plug-and-play AI tools with minimal technical expertise. The Indian D2C brands leveraging technology offer a model for how startups can democratise AI access for smaller players.

The Road Ahead for Indian AI

BharatGPT-2 is not an endpoint but a beginning. ISRO has already been tapped to develop BharatGPT-3, a multimodal model capable of processing text, images, audio and video in Indian languages, with a target completion date of 2028. The government’s total AI investment under the IndiaAI Mission stands at Rs 10,372 crore through 2030.

For now, BharatGPT-2 represents something that India’s AI community has long aspired to: a world-class AI system that speaks the country’s languages, respects its data sovereignty and serves its unique developmental needs. In the global AI race, India has announced that it intends to be a creator, not just a consumer.

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