Microsoft plans $3B investment to boost AI and cloud in India

Microsoft has announced a substantial investment of $3 billion aimed at enhancing its artificial intelligence (AI) and cloud computing capabilities in India over the next two years.

This initiative includes training 10 million individuals in AI skills by 2030, with an immediate focus on training 500,000 people by 2026.

The announcement was made by CEO Satya Nadella during the Microsoft AI Tour event in Bengaluru on January 8.

Nadella described this investment as “the single largest expansion we have ever done in India,” emphasising the importance of India’s growing role in the global AI landscape.

As part of this investment, Microsoft will establish new data centers and expand its Azure cloud platform to meet rising demand for cloud services.

The company has partnered with INDIAai, a government initiative, to facilitate AI training for a diverse audience, including students, educators, developers, and women entrepreneurs.

Nadella highlighted that India is rapidly becoming a leader in AI innovation, unlocking new opportunities across various sectors.

He noted that Microsoft has already trained 2.4 million individuals since 2024 and is developing “AI catalysts” to promote innovation in smaller cities.

Additionally, Microsoft plans to support up to 1,000 AI startups through its Founders Hub program, providing resources such as Azure credits and mentorship.

The investment aligns with India's goal of becoming a developed nation by 2047 and reflects Microsoft's commitment to fostering a robust AI ecosystem in the country.

Nadella's remarks came after discussions with Indian Prime Minister Narendra Modi, indicating confidence in India's entrepreneurial spirit and potential for technological advancement.

With this strategic investment, Microsoft aims to enhance its presence in the Indian market while contributing significantly to the local economy and workforce development.