diff --git a/pyproject.toml b/pyproject.toml
index 519d2d60..5a206cce 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -42,7 +42,7 @@ dependencies = [
     "fastapi >= 0.104.1",
     "python-multipart >= 0.0.5",
     "jinja2 == 3.1.2",
-    "openai >= 0.27.0, < 1.0.0",
+    "openai >= 1.0.0",
     "tiktoken >= 0.3.2",
     "tenacity >= 8.2.2",
     "pillow ~= 9.5.0",
diff --git a/src/khoj/processor/conversation/openai/utils.py b/src/khoj/processor/conversation/openai/utils.py
index 69fab7e5..a5868cb8 100644
--- a/src/khoj/processor/conversation/openai/utils.py
+++ b/src/khoj/processor/conversation/openai/utils.py
@@ -36,11 +36,11 @@ class StreamingChatCallbackHandler(StreamingStdOutCallbackHandler):
 
 @retry(
     retry=(
-        retry_if_exception_type(openai.error.Timeout)
-        | retry_if_exception_type(openai.error.APIError)
-        | retry_if_exception_type(openai.error.APIConnectionError)
-        | retry_if_exception_type(openai.error.RateLimitError)
-        | retry_if_exception_type(openai.error.ServiceUnavailableError)
+        retry_if_exception_type(openai._exceptions.APITimeoutError)
+        | retry_if_exception_type(openai._exceptions.APIError)
+        | retry_if_exception_type(openai._exceptions.APIConnectionError)
+        | retry_if_exception_type(openai._exceptions.RateLimitError)
+        | retry_if_exception_type(openai._exceptions.APIStatusError)
     ),
     wait=wait_random_exponential(min=1, max=10),
     stop=stop_after_attempt(3),
@@ -57,11 +57,11 @@ def completion_with_backoff(**kwargs):
 
 @retry(
     retry=(
-        retry_if_exception_type(openai.error.Timeout)
-        | retry_if_exception_type(openai.error.APIError)
-        | retry_if_exception_type(openai.error.APIConnectionError)
-        | retry_if_exception_type(openai.error.RateLimitError)
-        | retry_if_exception_type(openai.error.ServiceUnavailableError)
+        retry_if_exception_type(openai._exceptions.APITimeoutError)
+        | retry_if_exception_type(openai._exceptions.APIError)
+        | retry_if_exception_type(openai._exceptions.APIConnectionError)
+        | retry_if_exception_type(openai._exceptions.RateLimitError)
+        | retry_if_exception_type(openai._exceptions.APIStatusError)
     ),
     wait=wait_exponential(multiplier=1, min=4, max=10),
     stop=stop_after_attempt(3),
diff --git a/src/khoj/processor/conversation/openai/whisper.py b/src/khoj/processor/conversation/openai/whisper.py
index 72834d92..351319b7 100644
--- a/src/khoj/processor/conversation/openai/whisper.py
+++ b/src/khoj/processor/conversation/openai/whisper.py
@@ -3,7 +3,7 @@ from io import BufferedReader
 
 # External Packages
 from asgiref.sync import sync_to_async
-import openai
+from openai import OpenAI
 
 
 async def transcribe_audio(audio_file: BufferedReader, model, api_key) -> str:
@@ -11,5 +11,6 @@ async def transcribe_audio(audio_file: BufferedReader, model, api_key) -> str:
     Transcribe audio file using Whisper model via OpenAI's API
     """
     # Send the audio data to the Whisper API
-    response = await sync_to_async(openai.Audio.translate)(model=model, file=audio_file, api_key=api_key)
+    client = OpenAI(api_key=api_key)
+    response = await sync_to_async(client.audio.translations.create)(model=model, file=audio_file)
     return response["text"]
diff --git a/src/khoj/utils/models.py b/src/khoj/utils/models.py
index b5bbe292..37d09418 100644
--- a/src/khoj/utils/models.py
+++ b/src/khoj/utils/models.py
@@ -32,7 +32,7 @@ class OpenAI(BaseEncoder):
             raise Exception(
                 f"Set OpenAI API key under processor-config > conversation > openai-api-key in config file: {state.config_file}"
             )
-        openai.api_key = state.processor_config.conversation.openai_model.api_key
+        self.openai_client = openai.OpenAI(api_key=state.processor_config.conversation.openai_model.api_key)
         self.embedding_dimensions = None
 
     def encode(self, entries, device=None, **kwargs):
@@ -43,7 +43,7 @@ class OpenAI(BaseEncoder):
             processed_entry = entries[index].replace("\n", " ")
 
             try:
-                response = openai.Embedding.create(input=processed_entry, model=self.model_name)
+                response = self.openai_client.embeddings.create(input=processed_entry, model=self.model_name)
                 embedding_tensors += [torch.tensor(response.data[0].embedding, device=device)]
                 # Use current models embedding dimension, once available
                 # Else default to embedding dimensions of the text-embedding-ada-002 model