Microsoft CEO Satya Nadella appears during an event with tech CEOs and top officials, including Indian Prime Minister Narendra Modi, in the East Room of the White House in Washington, June 22, 2023.
Chris Kléponis | CNP | Bloomberg | Getty Images
Microsoft announced on Tuesday that it would invest $17.5 billion in India’s cloud computing and artificial intelligence infrastructure, making it the US tech giant’s biggest investment in Asia.
The company said the investments, aimed at scaling infrastructure, integrating AI into national platforms and improving workforce readiness, will be spread over 4 years, building on its $3 billion commitment made in January.
The announcement follows a meeting between Microsoft CEO Satya Nadella and Indian Prime Minister Narendra Modi, during which the two discussed India’s AI ambitions. Modi also met other tech CEOs on Tuesday, including IntelIt’s Lip-Bu Tan.
In a social media post, Nadella thanked Modi and said Microsoft’s investments would “help build the infrastructure, skills and sovereign capabilities needed for India’s AI-first future.”
The move comes as India tries to catch up on AI, with Modi emphasizing building a comprehensive technology ecosystem and AI sovereignty. The country also recently secured pledges of $15 billion in data center investment from Google and $8 billion from Amazon Web Services.
“Indian youth will harness this opportunity to innovate and harness the power of AI for a better planet,” Modi said in an article on X, referring to Microsoft’s investment.
Microsoft plans to use the funds to expand its existing cloud and AI infrastructure to serve its customers across all regions of India. It now offers Sovereign Public Cloud and Sovereign Private Cloud services in several regions.
The company added that it was doubling down on its January commitment to train 20 million Indians in AI by 2030, hoping to grow and train its more than 22,000 employees in the country.
Microsoft also announced on Tuesday that it will integrate its Azure AI capabilities into two key digital public platforms of India’s Ministry of Labor and Employment and the National Career Service.
India’s Minister of Electronics and Information Technology, Ashwini Vaishnaw, called the investment a signal of India’s rise as a trusted global technology partner, accelerating the shift from digital to public AI infrastructure.
While India lags far behind global leaders in advanced technologies such as chips and AI, the country’s huge consumer market and public funding have attracted major tech players.
Under its ‘India Semiconductor Mission’, the country has approved 10 chip projects with total investments of over $18 billion.
On Monday, US chip designer Intel signed a deal with Mumbai-based Tata Electronics to collaborate on chip offerings in the country, including products for AI applications.
