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Microsoft Announces $3 Billion Investment in India for Cloud & AI Growth

In addition to the investment, Microsoft plans to train 10 million people in AI skills by 2030. Nadella made this announcement during a conference attended by startup founders and technology executives.

Bengaluru: Microsoft CEO Satya Nadella announced on Tuesday that the tech giant will invest $3 billion (approximately ₹25,700 crore) in expanding its cloud computing and artificial intelligence (AI) capabilities in India. This move is aimed at boosting Microsoft’s presence in the rapidly growing AI ecosystem in India.

In addition to the investment, Microsoft plans to train 10 million people in AI skills by 2030. Nadella made this announcement during a conference attended by startup founders and technology executives.

India is becoming a key hub for AI innovation, with notable global tech leaders, including Nvidia CEO Jensen Huang, AMD’s Lisa Su, and Meta’s Chief AI Scientist Yann LeCun, recently visiting the country. India’s strong tech talent pool and major technology services firms like Tata Consultancy Services (TCS), Infosys, and Wipro play a significant role in the nation’s growing position in the global AI landscape.

The $3 billion investment is being described by Nadella as the “single-largest expansion” Microsoft has made in India. He expressed enthusiasm about the rapid diffusion of AI technology in the country but refrained from providing a specific timeline for the spending.

Microsoft’s Azure cloud services, which operate under its brand, include over 60 regions globally with more than 300 data centers. In India, Microsoft operates several regional data centers across Central, South, West, and South Central India, with further expansion plans in collaboration with Jio.

In his previous visit to India in February 2024, Nadella announced Microsoft’s plan to provide AI skills training to 2 million people in India by 2025, particularly in smaller cities and rural areas.

During his recent visit, Nadella also met with Prime Minister Narendra Modi in New Delhi. The two discussed India’s AI mission, the India Stack, and the country’s entrepreneurial vision. Nadella posted on X (formerly Twitter) expressing his excitement to further Microsoft’s commitment to making India an AI-first country. In response, Prime Minister Modi expressed his support for Microsoft’s expansion and investment plans.

Nadella further mentioned that future discussions could revolve around the correlation between GDP growth and efficiency, particularly in terms of energy consumption per dollar and AI progress. “We are building world-class AI infrastructure, crucial for innovation,” he said.

He emphasized that India’s rapid rise as a leader in AI innovation is creating new opportunities across the nation, and Microsoft’s investments in infrastructure and AI training will help ensure that people and organizations across India benefit broadly from these developments.

Microsoft’s mission to empower individuals and organizations in India through AI training reflects the company’s focus on human capital. Nadella highlighted that by training 10 million people by 2030, India will be well-positioned to leverage the immense potential of AI.

Microsoft continues to make substantial investments in its global AI infrastructure, with plans to invest around $80 billion in AI data centers this year alone.

During his last visit, Nadella also recognized the critical role of India’s developer community in creating innovative products that solve both local and global challenges. He highlighted the launch of the Advanta(I)ge India initiative, which will provide AI skills to 2 million people in India by 2025. Furthermore, Microsoft will expand its Code Without Barriers program to India in 2024, aiming to provide skilling and certification to 75,000 women developers.

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