In a significant move to enhance its presence in India, Microsoft Chairman and CEO Satya Nadella announced a groundbreaking $3 billion investment in cloud and artificial intelligence (AI) infrastructure, along with skilling initiatives, over the next two years. This announcement, made during the Microsoft AI Tour in Bengaluru, underscores the company’s commitment to India’s digital future and aligns with Prime Minister Narendra Modi’s vision of a developed nation (“Viksit Bharat”) by 2047.
This investment, the largest of its kind in India by Microsoft, will focus on strengthening AI and cloud capabilities across Central, South, and West India, including Jio India West and Jio India Central regions, with new data centers to be established. Nadella emphasized, “India is quickly emerging as a leader in AI innovation, unlocking vast new opportunities across the country.” The strategic investments in both infrastructure and AI skills will accelerate the country’s transformation into an AI-first nation, enabling broad benefits for people and organizations.
Microsoft’s latest initiative will reinforce India’s growing role in the global AI revolution, promoting widespread AI adoption and innovation tailored to India’s unique needs. Nadella also projected that India would become home to the world’s largest developer community on GitHub by 2028.
Empowering India Through AI Skilling and Innovation
As part of the second edition of its ADVANTA(I)GE India program, Microsoft plans to equip 10 million people with AI skills over the next five years, ensuring India’s long-term global competitiveness. Nadella highlighted India’s swift embrace of AI, especially innovations focused on Indian languages and industries, which are driving local solutions.
Puneet Chandok, President of Microsoft India and South Asia, remarked, “Over the past year, Microsoft has been instrumental in making AI a reality across India, from boardrooms to classrooms, and from commerce to communities. Today’s announcement strengthens our confidence in India’s potential, and we remain committed to empowering the nation with the skills and resources needed to succeed in the global economy. AI will continue to unlock new possibilities for decades to come.”
Building Sustainable AI Infrastructure
In addition to its focus on AI skilling, Microsoft’s investment will include the development of sustainable infrastructure, integrating renewable energy and liquid-cooled AI accelerators to optimize the efficiency of its Azure data centers. Nadella framed this expansion as part of a larger vision to establish a “data-driven ecosystem,” utilizing “data gravity” to spur innovation and progress.
“Our goal is to provide organizations with the infrastructure and tools they need to harness AI’s power in the most efficient and sustainable way,” Nadella said, stressing the need for localized solutions tailored to India’s diverse market.
Foundry: The Future of AI Development
Microsoft also introduced Foundry, a cutting-edge app server designed to integrate AI models for specific use cases. Supporting platforms like OpenAI’s models, Llama, and Mistral, Foundry aims to drive innovation in Indian languages and sectors. Nadella identified model orchestration as the next major phase in AI’s evolution, with India positioned at the forefront of testing and deploying advanced AI frameworks.
Government Collaboration for AI Preparedness
Jayant Chaudhary, Minister of State for Skill Development and Entrepreneurship, shared, “India’s vibrant youth and tech talent are pivotal to shaping the future of AI. Through the ‘AI for India’ mission, we aim to equip citizens with top-tier AI skills, drive innovation, create jobs, and bridge the digital divide. Partnerships with global leaders like Microsoft are key to this transformation. By empowering women, youth, and the broader workforce with advanced skills, we are preparing India for a future of digital leadership and sustainable economic growth.”
By fostering a robust, data-driven AI ecosystem and equipping India’s workforce with the necessary skills, Microsoft’s investment will help propel the nation’s digital and economic transformation for years to come.
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