Microsoft to Invest $3 Billion in India’s AI and Cloud Infrastructure

Microsoft Chairman and CEO Satya Nadella announced today that the company will invest $3 billion in India over the next two years to enhance cloud and AI infrastructure and foster skill development.

The initiative includes the establishment of additional data centers and seeks to expedite advancements in AI, in accordance with PM Narendra Modi’s aspiration of transforming India into a developed nation by the year 2047. This investment is supplementary to Microsoft’s previously announced $80 billion allocation for AI-enabled data centers in 2025.

India stands out as a pivotal growth market for American technology leaders, as notable figures like Nvidia’s Jensen Huang and AMD’s Lisa Su have made recent trips to the nation, pledging substantial investments.

Microsoft, boasting over 20,000 employees in 10 cities across India, is focused on supporting the local tech community’s growth while leveraging its talent pool, as stated by Nadella during a conference in Bengaluru. He highlighted the community’s role in Microsoft, particularly their participation in AI initiatives related to GitHub Copilot.

Microsoft, along with its technology counterparts, faces mounting pressure to demonstrate that the substantial investments made in artificial intelligence will soon yield financial returns. GitHub stands out as one of the rare investments in artificial intelligence that has proven to be profitable. In July, Microsoft announced that the tool achieved an annual run rate of $2 billion.

Microsoft has announced a huge plan to educate 10 million individuals in AI across India by the year 2030, according to Nadella. Last year, the company enhanced the skills of 2.4 million individuals. Like other prominent figures in the tech industry, Nadella, who hails from India, has garnered significant admiration in a nation where obtaining an engineering degree is regarded as a gateway to success.

A large crowd assembled to listen to his keynote, a highlight of the “Microsoft AI Tour.” Among those present was Prashant Bhanawat, a software engineer whose company utilizes Azure AI services. He reported waiting for over three hours to get into the conference venue.