Microsoft Corp will invest $3 billion to enhance its Azure cloud and artificial intelligence (AI) capabilities in India, CEO Satya Nadella announced on Tuesday. The company is deepening its commitment to a nation known for its tech expertise and cost advantages, aiming to make these investments profitable. This two-year investment, Microsoft’s largest in India to date, will also focus on upskilling the Indian workforce in AI, a spokesperson clarified. The announcement comes in addition to the company’s recently revealed plan to invest $80 billion in AI-powered data centers by 2025.
Earlier this year, the company committed to training 2 million people in AI by 2025, including those in rural areas. It is currently on track to reach this target, having trained 2.4 million people over the past year.
The investment, which will create new data centers and AI infrastructure in India, is a sign that Microsoft sees a large potential market for its products, said Nadella at an event in Bengaluru, the southern Indian city that houses many technology services companies such as Tata Consultancy Services Ltd and Infosys Technologies Ltd.
Nadella added that the investment will boost capacity in India, support local AI innovation, and build partnerships with local partners. Microsoft will encourage the development of AI projects by providing grants to researchers and developers and promoting access to its GitHub Copilot tool, a generative AI-based platform for developers. The company will also partner with local universities to train students and teachers in AI.
In addition, the company will train 250,000 government officers in generative AI to enable them to deliver next-generation citizen services better. It will also convene a nonprofit leader summit and provide 2,500 nonprofits access to resources, including AI tools, via its LinkedIn for Nonprofits resource hub.
The moves come as the world’s third-largest economy looks to develop its digital capabilities. Prime Minister Narendra Modi is betting on technology to boost the country’s long-term competitiveness, with a vision for a “Viksit Bharat” or developed India by 2047. The technology is already transforming the country’s business landscape, with IT firms like Infosys and Zomato among those using Microsoft tools. It’s a strategy that could pay dividends as the global demand for AI-based solutions grows.