Microsoft Announces $17.5bn Investment in India’s AI Infrastructure

 

Global tech giant Microsoft on Tuesday unveiled plans to invest $17.5 billion in developing India’s artificial intelligence infrastructure, with CEO Satya Nadella describing it as the company’s “largest investment ever in Asia.” The announcement comes as several multinational firms commit major investments to the South Asian nation, which is expected to surpass 900 million internet users by the end of the year.

“To support India’s ambitions, Microsoft is committing $17.5 billion—our largest investment ever in Asia—to develop the infrastructure, skills, and sovereign capabilities required for an AI-first future,” CEO Satya Nadella said in a post on X, without providing further details. He made the announcement following a meeting with Prime Minister Narendra Modi in New Delhi, thanking him 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 start-up 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.

Recent media reports indicate that authorities are preparing plans to require smartphone manufacturers to implement satellite location tracking that cannot be disabled by users, a move that has drawn concern from rights groups.

AFP

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