Set the Instant Pot to Sauté. Add olive oil and ground beef. Cook until browned, breaking it apart as it cooks. Drain excess grease if needed.
Stir in the diced onion and garlic powder. Cook for 1–2 minutes until softened.
Stir in tomato paste, chili powder, cumin, paprika, salt, and black pepper. Mix well.
Pour in the diced tomatoes (with juices), kidney beans, and water or broth. Stir to combine.
Close the lid and set the valve to Sealing. Cook on High Pressure for 12 minutes.
Allow a 10-minute natural release, then quick release any remaining pressure.
Open the lid carefully and give the chili a stir. If you prefer a thicker consistency, turn on Sauté mode and simmer for a few minutes until thickened to your liking.