Microsoft is set to invest a massive $3 billion in India to expand its AI and Azure cloud capabilities, a move that marks the company’s largest investment in the country to date. Over the next two years, the funds will help ramp up cloud infrastructure and upskill Indian talent in artificial intelligence. This investment is in addition to Microsoft’s broader commitment to pour $80 billion into AI-powered data centers for the fiscal year 2025.
India has become a prime growth hub for major US tech companies, thanks to its rich pool of technical expertise and cost advantages. Satya Nadella, CEO of Microsoft, highlighted that the country’s tech community has significantly contributed to the company’s AI innovations, especially through projects like GitHub Copilot. India’s developer base is currently the second-largest on GitHub, with projections to become the largest by 2028.
The tech giant’s expansion isn’t just about growth but also about tapping into India’s rising AI potential. Microsoft plans to train 10 million people in AI by 2030, continuing the upskilling efforts that saw 2.4 million people trained last year.
This aggressive push comes as Microsoft, like its tech peers, seeks to turn its substantial AI investments into profit. One of its most promising bets, GitHub Copilot, is already generating substantial returns, further solidifying India’s critical role in the company’s global strategy. Nadella’s visit also serves to cement his popularity, as hundreds of Indian engineers flocked to his keynote during the “Microsoft AI Tour.”
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