New Delhi: In a major step for India’s technology sector, Microsoft announced a USD 17.5 billion investment to boost the country’s artificial intelligence (AI) ecosystem. Made by Microsoft Chairman and CEO Satya Nadella on Tuesday, the announcement came after his meeting with Prime Minister Narendra Modi, where the two discussed India’s AI roadmap and ways to accelerate innovation and adoption.
Nadella called it Microsoft’s “largest investment in Asia”, highlighting the company’s long-term commitment to India’s digital growth. In a post on X, he wrote, “Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5B, our largest investment ever in Asia, to help build the infrastructure, skills and sovereign capabilities needed for India’s AI-first future.”
Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5B—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for… pic.twitter.com/NdFEpWzoyZ— Satya Nadella (@satyanadella) December 9, 2025
He emphasised that the investment aims to support India’s leap from digital public infrastructure to AI public infrastructure over the next decade, building a future that is both equitable and distinctly Indian in its scale and impact.
Microsoft highlighted that its investment will focus on three core pillars, which are scale, skills and sovereignty, aligning closely with PM Modi’s vision of a comprehensive AI ecosystem.
The IT giant’s India and South Asia President Puneet Chandok said, “Microsoft has been part of India’s fabric for more than three decades. As the nation moves confidently into its AI-first future, we are proud to stand as a trusted partner in advancing the infrastructure, innovation and opportunity that can power a billion dreams.”
He added that the new USD 17.5 billion investment builds on Microsoft’s earlier USD 3 billion commitment announced in January 2025.
The investment will be channelled into expanding hyperscale AI infrastructure, developing sovereign-ready solutions to ensure trust and implementing skilling programmes that empower every Indian to contribute meaningfully to the AI revolution. Microsoft will continue to scale its cloud operations, skilling initiatives and technology infrastructure across India, supported by a workforce of more than 22,000 employees located in Bengaluru, Hyderabad, Pune, Gurugram, Noida and other cities.
PM Modi Welcomes The Investment
PM Modi welcomed the announcement, describing it as a major opportunity for India’s youth to drive innovation and contribute to a sustainable AI-powered future.
“When it comes to AI, the world is optimistic about India! Had a very productive discussion with Mr. Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia. The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet,” he wrote on X.
When it comes to AI, the world is optimistic about India!
Had a very productive discussion with Mr. Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia.
The youth of India will harness this opportunity to innovate… https://t.co/fMFcGQ8ctK
— Narendra Modi (@narendramodi) December 9, 2025
Tuesday (December 9) also witnessed top executives from other technology giants engage with PM Modi on advancing AI in India. Cognizant CEO Ravi Kumar, Intel CEO Lip-Bu Tan and Tata Group leadership joined discussions highlighting opportunities for AI adoption, talent development and semiconductor ecosystem growth.
Had a wonderful meeting with Mr. Ravi Kumar S and Mr. Rajesh Varrier. India welcomes Cognizant’s continued partnership in futuristic sectors. Our youth’s focus on AI and skilling sets the tone for a vibrant collaboration ahead.@Cognizant @imravikumars https://t.co/qsq4DbakfF — Narendra Modi (@narendramodi) December 9, 2025
Intel announced a new MoU with the Tata Group to enable manufacturing, assembly and packaging of Intel-designed products at upcoming facilities, as well as advanced semiconductor packaging collaborations, reinforcing India’s ambitions to become a global semiconductor hub.
Through these initiatives, Microsoft, Cognizant and Intel aim to not only expand AI infrastructure and skilling opportunities but also support India’s broader technology ecosystem.
Cognizant reiterated its commitment to expanding into emerging cities to promote equitable growth and talent development, while Intel signalled its intent to accelerate AI-PC solutions and localisation of key semiconductor supply chains in India.
This combined wave of investment and collaboration positions India at the forefront of the AI revolution in Asia, offering unprecedented opportunities for innovation, skill development and economic growth.
As global tech giants strengthen their engagement with India, the country’s journey toward becoming an AI-first nation is poised to accelerate, creating a transformative impact across industries, citizens and the nation’s technological landscape.
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