Venture capital firm Andreessen Horowitz (a16z) has refuted recent claims about its alleged plans to establish a presence in India, while prominent artificial intelligence companies OpenAI and Anthropic have confirmed their expansions in the country.
Reports emerged earlier this week from various Indian media outlets suggesting that a16z was gearing up to set up an office in Bengaluru and recruit a local partner. These reports, based on unnamed sources, hinted at increased investments in Indian startups by the firm. Anish Acharya, a general partner at a16z based in the Bay Area, dismissed these reports as “entirely fake news” in a statement on X, which was subsequently confirmed by the firm’s spokesperson.
In the past, Andreessen Horowitz has ventured into global markets cautiously. Earlier this year, the firm shuttered its London office after just 18 months of operation, citing strategic shifts and favorable conditions in the United States. However, it continues to engage in international investments through remote teams and local networks. While a16z has made limited investments in India thus far, its most notable involvement was in the $260 million funding round for crypto exchange CoinSwitch in 2021. Despite speculations about a potential $500 million investment push in India, the firm has refrained from major actions in the country since then.
In contrast, AI companies are swiftly making inroads into the Indian market. OpenAI, known for ChatGPT and supported by Microsoft, announced plans to inaugurate its first office in New Delhi later this year. The company has already established a legal entity in India and commenced recruitment for a local workforce. India ranks as OpenAI’s second-largest market by user base, underscoring the country’s significance in its expansion strategies.
Anthropic, a US-based AI startup valued at $183 billion and backed by Amazon, disclosed its intention to launch its inaugural office in India in Bengaluru by early 2026, following its Tokyo office. CEO Dario Amodei is currently in India to engage with government officials and corporate partners. Amodei emphasized India’s appeal due to its vast technical talent pool and the Indian government’s dedication to ensuring widespread benefits of AI across all sectors, not just specific areas.
India has emerged as a pivotal market for AI integration. A recent study by Boston Consulting Group revealed that over 90% of Indian workers are already leveraging AI in some capacity, marking the highest adoption rate globally. Companies like OpenAI and Anthropic are keen on capitalizing on this growth momentum, while a16z seems to be maintaining a cautious stance by continuing its global investments without establishing a local presence.