Microsoft to Invest ₹1.5 Lakh Crore in AI Infrastructure in India
International technology company Microsoft is set to invest $17.5 billion (approximately ₹1.5 lakh crore) in artificial intelligence (AI) infrastructure and skills in India. Microsoft Chairman Satya Nadella made this announcement after a meeting with Prime Minister Narendra Modi.
Microsoft has invested significantly in AI over the past few years. In India, the company plans to strengthen its cloud and computing infrastructure, enhance AI-related skills, and support sovereign data security. In a post on social media platform X, Nadella stated, “To help fulfill the country’s ambitions, Microsoft plans to invest $17.5 billion in the AI sector. This is our largest investment in Asia.” This investment will be made over four years.
Earlier this year, the company announced plans to invest $3 billion in cloud and AI infrastructure in the country over the next two years. The company also stated that it would train approximately 10 million people in AI-related skills in India over the next five years. Microsoft has over 22,000 employees in India, with offices in Gurugram, Noida, Bengaluru, Hyderabad, Pune, and other cities. However, the increased investment in AI is also impacting Microsoft’s workforce, as the company is reducing staff to cut costs. A recent Reuters report indicated that Microsoft plans to lay off thousands of employees, particularly affecting divisions such as sales and gaming. Microsoft, the maker of the Windows operating system, had previously announced capital expenditures of approximately $80 billion for fiscal year 2025.
In October, Reliance Industries (RIL), one of India’s largest business groups, and Meta, which operates the social media platform Facebook, announced a joint venture for artificial intelligence (AI) related services. For this purpose, Reliance and Facebook Overseas, a subsidiary of Meta, have partnered. A new company, Reliance Enterprise Intelligence Limited (REIL), has been created for this venture. This company will develop and market enterprise AI services.
