ChatGPT maker OpenAI has introduced local inference and data processing for its APIs in India, adding to its efforts to expand the commercialisation of ChatGPT in its largest market.

For context, local data inferencing allows businesses to ensure that both API requests and the computing required to generate responses take place within India for supported workloads. It is initially available for the GPT-6 Luna model and extends OpenAI’s existing data residency options in the country.

OpenAI’s India enterprise head Nitin Bawankule pointed out that local inference gives businesses greater control over where their data is processed and could help more organisations move from experimenting with AI to deploying it in their day-to-day operations.

“Some Indian businesses have not fully deployed AI for important work because they need the information involved to be processed within the country,” Bawankule said.

To use the new offering, customers need to create a new API project, select India as the location for both data storage and processing, and use the corresponding India regional endpoint.

With the launch, India joins Australia and Japan as the latest markets where OpenAI has introduced API inference residency.

Data localisation has emerged as an important consideration in enterprise AI adoption. While global AI models offer advanced capabilities, businesses handling sensitive information require a greater understanding of where their data is going.

Storage and processing of data before model deployment is something that cannot be compromised from a security perspective for banks, financial institutions and government agencies. For these clients, data residency and infrastructure requirements can limit the use of international frontier AI models in production environments.

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