Microsoft announces $23 billion AI investment: $17.5 billion bet on India,

Microsoft announced on Tuesday a new artificial intelligence (AI) investment plan of approximately $23 billion, with $17.5 billion allocated to India to build local AI infrastructure. Analysts say that as Microsoft further increases its stake in one of the fastest-growing digital markets globally, the company's strategic investment in India has significantly deepened, marking Microsoft's largest investment in Asia.

Nadella's three-day visit to India includes meetings with policymakers and participation in several AI-related events held in Bangalore, the technology hub, and Mumbai, the financial center.

Microsoft stated in a press release: "Microsoft and India are at the starting point of setting new benchmarks together, and in the next decade, we will drive India's leap from digital public infrastructure to AI public infrastructure."

India has set ambitious goals to become a global leader in AI and semiconductor manufacturing. The Indian government has introduced a series of financial incentives aimed at attracting global chip manufacturers and large tech companies. Analysts believe that this announcement highlights the intensifying competition among major global tech companies to accelerate their presence in India, which has become one of the fastest-growing digital markets globally.

In October this year, Google announced that it would invest $15 billion in India over the next five years to establish the company's first AI hub there. This center, located in the southern Indian city of Visakhapatnam, will become one of Google's largest AI hubs globally.

This investment is a further increase on the $3 billion investment Microsoft announced earlier this year, when Microsoft stated it would invest $3 billion in the next two years to build cloud computing and AI infrastructure, new data centers, and enhance workforce skills. The plan will make Microsoft one of the largest cloud computing players in India, with the first new data center expected to be operational by mid-2026.

Microsoft has over 30 years of operational history in India and currently employs more than 22,000 staff locally, continuously expanding cloud computing and data center capacity to support higher-end computing demands.