Microsoft to invest $17.5 billion in India’s AI infra as Big Tech queues up
Microsoft CEO Satya Nadella attends an event attended by technology CEOs and senior officials, including Indian Prime Minister Narendra Modi, in the East Room of the White House in Washington on June 22, 2023.
Chris Kleponis | CNP | Bloomberg | Getty Images
Microsoft It announced on Tuesday that it would invest $17.5 billion in India’s cloud and AI infrastructure, making it the US tech giant’s largest investment in Asia.
The company said the investments, which aim to expand hyperscale infrastructure, deploy artificial intelligence on national platforms and improve workforce readiness, will be spread over 4 years, building on the $3 billion commitment it made in January.
The announcement came after a meeting between Microsoft CEO Satya Nadella and Indian Prime Minister Narendra Modi, where India’s artificial intelligence goals were discussed. Modi also met other tech CEOs on Tuesday. IntelLip-Bu Tan.
In a post on social media, Nadella thanked Modi and said Microsoft’s investments “will help build the infrastructure, skills, and sovereign talent needed for India’s AI-first future.”
The move comes as India tries to catch up with AI, with Modi emphasizing building a comprehensive technology ecosystem and AI dominance. The country also recently received promises of $15 billion in data center investments. Google and $8 billion from Amazon Web Services.
“India’s youth will seize this opportunity to innovate for a better planet and harness the power of artificial intelligence,” Modi said in a post on X, referring to Microsoft’s investment.
Microsoft plans to use the funds to scale up its existing cloud and AI infrastructure to serve customers in various parts of India. It now provides “Sovereign Public Cloud” and “Sovereign Private Cloud” services in various regions.
The company added that it had doubled down on its January commitment to train 20 million Indians in artificial intelligence by 2030, hoping to grow and upskill its more than 22,000 employees in the country.
Microsoft also announced on Tuesday that it will integrate Azure AI capabilities into two key digital public platforms of India’s Ministry of Labor and Employment and the National Career Service.
Ashwini Vaishnaw, Union Minister for Electronics and Information Technology of India, described the investment as a signal of India’s rise as a reliable global technology partner, accelerating the transition from digital to AI public infrastructure.
While India lags far behind global leaders in advanced technologies such as chips and artificial intelligence, the country’s huge consumer market and public finances have attracted the attention of major technology players.
The country has approved 10 chip projects with a total investment of over $18 billion under the “India Semiconductor Mission”.
American chip designer Intel on Monday signed a deal with Mumbai-based Tata Electronics aimed at collaborating on chip offerings in the country, including products for artificial intelligence applications.
