Microsoft Corp. has announced plans to invest $3 billion (approximately ₹25,752 crore) to enhance its cloud computing and artificial intelligence capabilities in India, focusing on the nation as a key driver for its revenue growth.
During an event in Bangalore on Tuesday, Chief Executive Officer Satya Nadella unveiled the investment, which is set to occur over a two-year period. The announcement was made in front of an audience that included startup founders and executives from leading technology firms such as Wipro Ltd. and Cognizant Technology Solutions Corp.
India, boasting a population of 1.4 billion, has become a significant battleground for AI development, with prominent technology leaders like Nvidia Corp.’s Jensen Huang and Advanced Micro Devices Inc.’s Lisa Su visiting in recent months. The country is home to millions of programmers, as well as major technology services firms including Tata Consultancy Services Ltd. and Infosys Ltd., making it a vital hub for AI talent.
“The diffusion rate of AI in India is exciting,” Nadella remarked.
It was indeed a delight to meet you, @satyanadella! Glad to know about Microsoft’s ambitious expansion and investment plans in India. It was also wonderful discussing various aspects of tech, innovation and AI in our meeting. https://t.co/ArK8DJYBhK
— Narendra Modi (@narendramodi) January 6, 2025
Following the event, Nadella shared a photograph from his meeting with India’s Prime Minister Narendra Modi, expressing enthusiasm about Microsoft’s commitment to fostering an AI-first environment in India. The prime minister expressed his satisfaction regarding the company’s expansion and investment plans.
Under Nadella’s leadership, Microsoft, based in Redmond, Washington, has prioritized the commercialization of AI technologies. Just last week, the company revealed plans for an $80 billion (around ₹6,86,733 crore) investment in constructing data centers, which are crucial for enabling businesses to implement AI systems and tools.
Microsoft’s presence in India has already been substantial, with over 23,000 employees across major cities, including Bangalore and Hyderabad. Nadella also announced that Microsoft aims to provide AI training for 10 million individuals in India by 2030.
© 2025 Bloomberg L.P.
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