In a landmark move that will significantly reshape the technology landscape in India, Microsoft CEO Satya Nadella has announced a record-breaking $17.5 billion investment to power the nation's "AI first future".
This massive commitment, which Nadella marked as Microsoft's largest ever in Asia, was made public after a highly motivational meeting with Prime Minister Narendra Modi. The infusion of capital into the Indian AI ecosystem is seen as a strong signal of trust from the outside world in the country's talent and innovation hub status for AI.
While talking to PM Modi, Nadella pointed out that the high-profile investment intends to create essential infrastructure, digitalize skills, and improve sovereign capabilities. So, the progressive funding from Microsoft not only accounts for new data centre projects but it also positions them as the engine and core of advanced AI and cloud services.
On social media platform X, Nadella expressed his gratitude to PM Modi for the "energizing discussion around India's AI opportunity" which perfectly matches the cooperation spirit in the announcement.
This venture-round visit to India by Nadella is actually his second trip this year and thus a move to reinforce Microsoft's follow-the-sun strategy in alignment with a prior declaration made in January about infusing $3 billion in two years.
Prime Minister Modi greeted the announcement with the words "the world is quite hopeful of India in AI," and then freshened up the clip by saying that Indian youth next generations are ready to take-off using this golden opportunity to innovate and create a better earth. That said, as large US tech companies step up their ambition in India, Microsoft is not alone in making this massive investment.
This decision is in line with the Indian market, which has turned into the main battlefield for tech giants from America. This is how it went: Google declared its intentions in October where it would be injecting $15 billion over five years, besides planning a gigantic 1-gw AI factory in Visakhapatnam.
With big names in tech slashing their wallets into the country, India is transitioning at a breakneck pace to become the front runner in AI innovation which is opening the door to many new opportunities to locals and the economy alike.
