Microsoft announces record $17.5 billion investment in India

Microsoft CEO Satya Nadella has reinforced the company’s deepening partnership with India, unveiling a massive commitment aimed at accelerating the nation’s Artificial Intelligence-led future. 

Following a meeting with Prime Minister Narendra Modi in New Delhi, Nadella announced Microsoft’s largest-ever investment in Asia, signalling a new chapter in India’s AI ambitions.

On Tuesday, Satya Nadella revealed that Microsoft will invest USD 17.5 billion to help build India’s AI-ready infrastructure, strengthen sovereign capabilities, and equip the nation with essential skills for an AI-first future.

Nadella made the announcement on X, expressing gratitude to Prime Minister Modi for an “inspiring conversation on India’s AI opportunity.” The investment marks a dramatic leap from the earlier commitment announced in January, when Microsoft pledged $3 billion for cloud and AI development, including new datacentres across the country.

Boosting Infrastructure, Skills and National Capabilities

According to Microsoft, the latest investment is aimed at accelerating AI innovation crucial to achieving the Prime Minister’s Viksit Bharat 2047 vision. As part of its long-term roadmap, the company also plans to train 10 million people in AI skills over the next five years through its ADVANTA(I)GE India programme.

Nadella emphasised that India is rapidly emerging as a global hub of AI-driven innovation, creating opportunities across sectors. Strengthening AI infrastructure and developing a skilled workforce, he said, will ensure that the benefits are accessible to people and organisations nationwide.

With this landmark investment, Microsoft deepens its strategic role in shaping India’s technological transformation. As the country positions itself at the forefront of global AI advancement, the collaboration promises to empower millions, boost competitiveness, and accelerate India’s journey towards becoming a fully developed digital nation by 2047.

The investments will primarily boost India's AI capacities.