Leading artificial intelligence companies OpenAI and Anthropic are set to expand their footprint in India, even as prominent venture capital firm Andreessen Horowitz (a16z) has denied reports suggesting plans to open an office in the country.

Earlier this week, multiple Indian media outlets reported that a16z was preparing to establish a Bengaluru office and seeking a local partner, signaling a potential surge in its Indian investments. However, Anish Acharya, a Bay Area–based general partner at a16z, called these reports “entirely fake news” on X. The firm also confirmed the statement through a spokesperson, putting speculation to rest.

Andreessen Horowitz has historically explored international markets but has maintained a measured approach. Earlier this year, the firm closed its London office after just 18 months of operation, citing strategic adjustments and favorable conditions in the United States as the rationale. In India, a16z’s presence has been limited, with its most notable involvement being the $260 million funding round for crypto exchange CoinSwitch in 2021. Reports of a possible $500 million investment push have yet to materialize into concrete actions.

Meanwhile, AI companies are rapidly entering India’s market, recognizing its growing potential. OpenAI, the creator of ChatGPT and backed by Microsoft, plans to open its first office in New Delhi later this year. The company has already registered a legal entity in India and begun hiring a local team. With India emerging as OpenAI’s second-largest market by user numbers, the country is playing a crucial role in its global growth strategy.

Similarly, Anthropic, a U.S.-based AI startup valued at $183 billion and supported by Amazon, will open its first India office in Bengaluru in early 2026. This office will be the company’s second in Asia after Tokyo. CEO Dario Amodei is currently visiting India to meet government officials and enterprise partners. “India is compelling because of the scale of its technical talent and the commitment from the Indian government to ensure the benefits of artificial intelligence reach all areas of society, not just concentrated pockets,” he said.

India’s AI adoption is among the fastest in the world. According to a Boston Consulting Group study, over 90% of Indian workers already use AI in some form, demonstrating the country’s readiness for advanced technological solutions. This high adoption rate makes India an attractive destination for AI firms looking to scale rapidly.

While OpenAI and Anthropic are actively expanding their local presence to leverage India’s talent pool and growing AI ecosystem, Andreessen Horowitz appears to be taking a more cautious stance. The firm continues to invest internationally, but without establishing a local office, signaling a strategy that prioritizes global flexibility over direct market immersion.

As India solidifies its position as a leading hub for AI innovation and adoption, companies like OpenAI and Anthropic are racing to tap into the market, while venture capital giants such as a16z remain deliberate in their approach.