Startup Stumble:
The Indian AI industry saw a dramatic twist in August 2025—a story of ambition, hype, and sudden disruption. Popular YouTuber Dhruv Rathee, along with his team, launched AI Fiesta, a subscription-based AI super-app, with massive expectations. But just a few days later, OpenAI introduced ChatGPT Go, a low-cost India-exclusive subscription plan, which shook the very foundation of Rathee’s new venture.
This clash of a homegrown startup versus a global AI giant has now become a case study on how influencer-driven businesses face challenges when tech leaders decide to localize their offerings.
The Ambitious Launch of AI Fiesta
As per the News Source Hindustan Times,In mid-August, Dhruv Rathee, with entrepreneurs Mohammad Hasan and Divyanshu Damani, launched AI Fiesta, promoted as India’s first AI super-app. The idea was simple yet powerful: give users access to six leading AI models in one place at a single affordable subscription price.
The subscription details were:
- ₹999 per month (or ₹834/month with an annual plan)
- Access to six models: ChatGPT, Google Gemini, Anthropic Claude, Perplexity, xAI Grok, and DeepSeek
- Seamless UPI payment integration, solving a common problem for Indian users who lacked international cards
The appeal was huge. Subscribing to even two of these services individually would cost more than ₹3,400/month, whereas AI Fiesta bundled them all for less than a third of the price.
The hype was unmatched. Reports suggested that within just 36 hours, AI Fiesta hit $3 million in Annual Recurring Revenue (ARR). The buzz was a mix of Dhruv Rathee’s fan following and India’s growing hunger for affordable AI access.
Cracks Begin to Show: The Token Problem
Despite the grand launch, critical voices soon emerged, especially from forums like Reddit. Users discovered a key limitation: the shared token pool.
- AI Fiesta offered 400,000 tokens per month across all six models.
- Every prompt, image generation, or conversation consumed tokens.
- Heavy use of one model meant fewer tokens for the others.
This meant that while the app promised “access to six models,” in practice it offered limited and rationed access. Many users felt it was less of an AI super-app and more of an API repackaging service with restrictions.
The initial shine of affordability started to fade once users realized they weren’t getting full, independent access to each model.
The Knockout Punch: OpenAI’s ChatGPT Go
Just as AI Fiesta was dealing with criticism, OpenAI made a bold move. On August 19, 2025, it launched ChatGPT Go, an India-exclusive subscription at an eye-catching ₹399/month—less than half of AI Fiesta’s price.
We just launched ChatGPT Go in India, a new subscription tier that gives users in India more access to our most popular features: 10x higher message limits, 10x more image generations, 10x more file uploads, and 2x longer memory compared with our free tier. All for Rs. 399. 🇮🇳
— Nick Turley (@nickaturley) August 19, 2025
ChatGPT Go offered:
- 10x more usage compared to the free version
- Access to the advanced GPT-5 model
- Double the memory for context-rich conversations
- UPI payments, making it as local-friendly as AI Fiesta
Though it did not offer multiple AI models, its strength lay in delivering unlimited depth with one powerful tool—and at a much lower price point.
Why ChatGPT Go Beat AI Fiesta
When put side by side, the comparison was clear:
| Feature | AI Fiesta | ChatGPT Go | Winner |
|---|---|---|---|
| Price | ₹999/month | ₹399/month | ChatGPT Go |
| Main AI Model | GPT-4o via API | Native GPT-5 | ChatGPT Go |
| Usage | Shared 400k tokens | Clear 10x Free Tier | ChatGPT Go |
| Brand Trust | New Startup | OpenAI | ChatGPT Go |
| Offer | Broad but limited | Deep, reliable access | Depends on need |
For the average Indian user, the choice was simple. They wanted more ChatGPT usage at a lower cost, and OpenAI delivered exactly that. The “all-in-one buffet” idea of AI Fiesta no longer felt attractive when the star dish—ChatGPT—was cheaper and better elsewhere.
Key Lessons for Indian Startups
The rise and stumble of AI Fiesta gives important lessons for entrepreneurs:
- Building on APIs is risky
If your business model depends entirely on another company’s APIs, you are vulnerable. When OpenAI changed its pricing and strategy, AI Fiesta’s model weakened overnight. - Influence brings hype, not sustainability
Dhruv Rathee’s name ensured massive early traction, but a product must deliver long-term value beyond hype. - Global giants will localize
Many believed global players would ignore Indian affordability needs. But ChatGPT Go, with UPI support and Indian pricing, proved otherwise. Giants will adapt to win key markets.
Conclusion: A Wake-Up Call, Not the End
AI Fiesta is not completely dead. It still holds some value for niche users—developers, researchers, or content creators—who genuinely need access to multiple models for comparisons or experimentation. But for the masses, the dream of becoming India’s default AI app is gone.
The real takeaway? India’s AI future cannot be built on just bundling Western tools. To survive against global giants, startups must create original technology or solve uniquely local problems that cannot be easily replicated by OpenAI, Google, or Anthropic.
The race for AI dominance in India has only just begun. But one thing is clear: the rules of the game have changed, and the margin for error is shrinking.
