Microsoft Makes Record Investment In India

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Microsoft announced on 9th December that it would invest $17.5 billion in India by 2029, making it the company's largest investment ever in Asia. The announcement came immediately after CEO Satya Nadella met with Prime Minister Narendra Modi to discuss India's AI ambitions.

Microsoft's commitment follows similar announcements from Google, which pledged $15 billion to establish an AI hub in Andhra Pradesh. Similarly, Amazon announced it would invest $35 billion in the country by 2030.

Collectively, these three companies are committing more than $70 billion to India's AI infrastructure and development over the next five to ten years. 

Microsoft's investment specifically targets building AI infrastructure, cloud computing capacity and developing sovereign AI capabilities that belong to India rather than being dependent on western technology.

The investment will also integrate AI tools into national platforms like e-Shram and the National Career Service, potentially benefiting over three hundred ten million informal workers who currently lack access to digital employment and skill-building opportunities.

The reason why tech giants are focusing on India is that the country has a young and growing population. It also has cheap data and regulatory support for AI development, creating conditions that are favorable for establishing infrastructure.