Microsoft has announced a substantial investment of $3 billion aimed at enhancing its Azure cloud and artificial intelligence (AI) capabilities in India, as stated by CEO Satya Nadella on January 7. This investment, which marks the company’s largest commitment in the region to date, is intended not only to capitalize on India’s technological expertise and cost advantages but also to ensure the profitability of these ventures. Over the next two years, the funds will be allocated to upskilling the Indian workforce in AI, in addition to a previously disclosed plan to invest $80 billion in AI-driven data centers by fiscal 2025. India represents a significant growth opportunity for American technology firms, with notable leaders such as Nvidia’s Jensen Huang and AMD’s Lisa Su recently visiting to announce substantial investments. With a workforce exceeding 20,000 across ten cities in India.
Microsoft aims to foster local technological development while leveraging the country’s talent pool, as highlighted by Nadella during a conference in Bengaluru. He emphasized the vital role of the Indian developer community, particularly in contributing to AI initiatives like GitHub Copilot, which is a generative AI tool for developers. Nadella pointed out that India currently ranks as the second-largest developer community on GitHub, with projections indicating it will surpass the United States by 2028. Furthermore, he noted that contributions from India in AI projects are second only to those from the United States. As Microsoft, along with its industry counterparts, faces pressure to demonstrate the profitability of its AI investments, GitHub has emerged as one of the few successful ventures, boasting an annual run-rate of $2 billion as of July. Looking ahead, Microsoft aims to train 10 million individuals in AI in India by 2030, building on the 2.4 million people it upskilled last year.
