Microsoft Announces USD 17.5 Billion AI Investment for India

Microsoft Chairman and CEO Satya Nadella on Tuesday announced a massive USD 17.5 billion investment in India, aimed at accelerating the country’s rapidly growing artificial intelligence ecosystem. The announcement came shortly after Nadella met Prime Minister Narendra Modi to discuss India’s AI roadmap and long-term digital priorities.

Calling it Microsoft’s “largest investment in Asia,” Nadella said the funding will help strengthen India’s AI infrastructure, develop skilled talent and support the country's sovereign capabilities. In a post on X, he thanked the Prime Minister for an “inspiring conversation” on India’s AI opportunity.

Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5B—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for… pic.twitter.com/NdFEpWzoyZ

— Satya Nadella (@satyanadella) December 9, 2025

According to a statement released by Microsoft, the company and the Government of India are working toward shaping the next decade of innovation by moving from “digital public infrastructure to AI public infrastructure,” aiming to build systems at a uniquely Indian scale and impact.

Microsoft said its new India investment will be driven by three core pillars, scale, skills and sovereignty, aligning with the government’s vision of building a national AI ecosystem that promotes innovation and accessibility.

Puneet Chandok, President of Microsoft India and South Asia, said the company has been closely connected with India’s tech landscape for more than 30 years. With this new commitment, along with the USD 3 billion investment announced in January 2025, Microsoft aims to accelerate AI development across the country.

Chandok said the investment will support hyperscale cloud and AI infrastructure, trusted and sovereign-ready solutions, and large-scale skilling programs designed to empower citizens across India. He added that Microsoft’s workforce of over 22,000 employees, spread across Bengaluru, Hyderabad, Pune, Gurugram, Noida and other cities, will play a key role in advancing this vision.

Microsoft said the USD 17.5 billion investment will fund expanded cloud and AI operations, infrastructure growth, and nationwide training initiatives as India moves deeper into an AI-first era.

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