Microsoft bets big on India with $3 Billion AI investment

Microsoft is making its biggest bet on India yet, with Chairman and CEO Satya Nadella announcing a massive $3 billion investment to boost the country’s AI and cloud ecosystem. Speaking at the Microsoft AI Tour in Bengaluru, Nadella highlighted this as the company’s largest expansion in India to date, calling it a pivotal moment for innovation.

He emphasised Microsoft’s commitment to empowering developers and businesses to leverage AI tools, predicting that the next year will be transformative as cutting-edge technologies become integral to workflows and industries across the nation.

On Monday, Nadella met with Prime Minister Narendra Modi and praised India’s digital transformation efforts, calling them inspiring. In a post on X (formerly Twitter), Nadella expressed admiration for the Indian government’s focus on sustainable and inclusive growth through digitalisation, and pledged Microsoft’s support to help achieve the vision of “Digital India.”

“Thank you, PM @narendramodi ji for your leadership. Excited to build on our commitment to making India AI-first and work together on our continued expansion in the country to ensure every Indian benefits from this AI platform shift,” wrote Nadella.

According to a PTI report, PM Modi also acknowledged India’s progress in technology and innovation, highlighting that the nation’s youth is driving an era of tech-led growth with transformative potential. Nadella’s visit, which included meetings with key leaders and discussions on governance and digital security, focused on Microsoft’s role in supporting India’s digital aspirations.

At the Microsoft Future Ready Leadership Summit in Mumbai, Nadella discussed the growing importance of cloud-based services for energy efficiency and their role in scaling India’s digital infrastructure. He also emphasised the company’s commitment to supporting India’s ecosystem of developers, startups, and businesses, further strengthening Microsoft’s relationship with the country, where it has been operational for over 32 years.

During a showcase event on January 4, Nadella highlighted the social impact of technology in education and philanthropy, stressing inclusivity and empowerment. He reaffirmed Microsoft’s dedication to India, emphasising investment in local initiatives, such as AI and data centres, underlining the company’s focus on social and economic development.