Microsoft has announced a massive $17.5 billion investment in India, a move the tech giant says will accelerate the country’s transformation into an AI-driven economy. CEO Satya Nadella, who revealed the news after meeting with Prime Minister Narendra Modi in New Delhi, described the plan as Microsoft’s largest-ever investment in Asia.
In a brief statement shared on X, Nadella said the funds will help India build “the infrastructure, skills, and sovereign capabilities” needed for what he called an “AI-first future.” No timeline or project breakdown was provided, but the announcement marks a dramatic expansion from Nadella’s earlier pledge of $3 billion for cloud and AI centres earlier this year.
The surge of tech investment underscores India’s growing importance to global companies eager to tap into a digital market expected to reach 900 million internet users by the end of 2025. Over the past few months, several major U.S. AI players—including Anthropic, Google, OpenAI, and Perplexity AI—have announced offices, partnerships, or multibillion-dollar commitments in the country.
Google, for instance, recently pledged $15 billion to build a massive data and AI hub in India, while OpenAI confirmed it will open a local office as ChatGPT usage in the country quadruples.
But India’s digital expansion is also prompting tighter scrutiny from regulators. Reports indicate that authorities are considering rules requiring smartphone makers to install permanent satellite tracking features, a move that civil rights groups warn could enable excessive surveillance.
Despite the regulatory tensions, India continues to attract unprecedented global interest as it positions itself as a central player in the future of artificial intelligence—an ambition now bolstered by Microsoft’s record-shattering investment.
