Microsoft CEO Satya Nadella announced a landmark investment of $17.5 billion in India, marking the company's largest ever financial commitment in Asia.

This substantial injection will be spread over the next four years, from 2026 to 2029, with the goal of advancing India’s AI-first vision by building critical infrastructure, enhancing skills, and fostering sovereign capabilities.

This new investment adds to Microsoft's earlier pledge of $3 billion announced in January 2025, signalling a sustained and deepening commitment to the Indian market.

Nadella shared his optimism following a conversation with Prime Minister Narendra Modi, highlighting the immense potential India holds as one of the world's fastest-growing digital markets.

The interaction underscored shared ambitions to transform India into a powerhouse of artificial intelligence, tapping into its vast talent pool and rapidly digitising economy.

Modi's response expressed confidence and optimism about India's role in the global AI ecosystem, acknowledging the country's robust government incentives and strategic focus on becoming a leading player in AI and semiconductor manufacturing.

This major investment occurs amid a swift surge of interest from other global technology giants in India’s AI and digital domains. Google's recent announcement to invest $15 billion over five years to launch one of its largest AI hubs in Visakhapatnam exemplifies this trend.

Similarly, OpenAI has revealed plans to open an office in India, citing a fourfold increase in ChatGPT usage in the country over the past year.

The Indian corporate sector is also making significant moves in the AI space. Reliance Industries, led by Mukesh Ambani, has committed $15 billion towards AI-driven ventures, aiming to evolve from its traditional oil and telecom roots into a deep-tech leader.

Reliance's joint venture with Meta, known as Reliance Enterprise Intelligence Limited, further underscores this shift, with an initial ₹855 crore investment to develop and distribute enterprise AI services.

India's government is actively encouraging this wave of AI innovation by offering financial incentives to attract global chipmakers and tech firms. The emphasis on building a robust innovation ecosystem seeks not only to create jobs but also to reduce dependence on imported technologies by fostering indigenous semiconductor manufacturing.

Nadella's visit to India spans three days, during which he is engaged in strategic discussions with policymakers and participates in AI-centric events in Bangalore and Mumbai.

This trip aims to deepen collaborations and align Microsoft's AI strategy with India’s ambitious technological aspirations.

The synergy between global tech investments and India's supportive policy environment signals a transformative era for the country's digital future.

With companies like Microsoft, Google, Reliance, and OpenAI investing heavily, India is poised to become a significant global AI hub, driving innovation, economic growth, and technological self-reliance on the world stage.

Based On ET News Report