Global technology giant Microsoft announced on Tuesday plans to invest $17.5 billion to help build India’s artificial intelligence infrastructure, with CEO Satya Nadella calling it “our largest investment ever in Asia”.
Several global corporations have announced large investments this year in the South Asian nation, which is projected to have more than 900 million internet users by year’s end.
“To support the country’s ambitions, Microsoft is committing US$17.5B (billion) — our largest investment ever in Asia — to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future,” Nadella said in a post on X, without giving any further details.
Nadella made the announcement on social media after he met Prime Minister Narendra Modi in New Delhi, and thanked the leader for “an inspiring conversation on India’s AI opportunity”.
Earlier this year, Nadella announced plans to invest $3 billion in India in AI and cloud infrastructure over the next two years.
Global technology giants are aggressively courting more users in the world’s most populous country and fifth-largest economy.
A special area of focus has been artificial intelligence, with US startup Anthropic in October unveiling plans to open an office in India. Its chief executive, Dario Amodei, has also met Modi.
The same month, Google said it would invest $15 billion in India over the next five years, as it announced a giant data centre and artificial intelligence base in the country.
OpenAI has said it will open an India office, with its chief, Sam Altman, noting that ChatGPT usage in the country had grown fourfold over the past year.
AI firm Perplexity also announced a major partnership in July with Indian telecom giant Airtel, offering the company’s 360 million customers a free one-year Perplexity Pro subscription.
But India’s bid to become a global technology and artificial intelligence hub is colliding with increasingly tightening digital regulations.
According to recent media reports, authorities are drafting plans to ensure that manufacturers enable satellite location tracking in smartphones that cannot be turned off by users — a proposal that rights groups have raised the alarm over.
