- Microsoft to invest $3 billion in India to develop artificial intelligence and cloud computing
- India is a global force for AI talent
- Microsoft has received a lot of interest and a positive reaction from local professionals
- Why is Microsoft doubling its investment in India?
Microsoft to invest $3 billion in India to develop artificial intelligence and cloud computing
Technology giant Microsoft has announced its most significant investment in India - $3 billion - to expand the country's Azure cloud computing and artificial intelligence (AI) capabilities. This two-year investment will allow the company to leverage India's tech talent and low costs to make these investments as profitable as possible.
The news was announced by Microsoft CEO Satya Nadella, who stressed that India is one of the company's key growth markets. The investment will not only strengthen the AI infrastructure but also help develop local professionals, he said. This $3 billion investment will be in addition to Microsoft's previously announced plans to spend $80 billion on AI data centers in the 2025 financial year.
"India has the world's second largest community of GitHub developers, second only to the US. India is projected to become the largest such community by 2028," Nadella said at the Microsoft AI Tour event in Bengaluru.
India is a global force for AI talent
Major US tech companies are increasingly looking to India as a growing technology and innovation hub. In recent months, Nvidia CEO Jensen Huang, AMD CEO Lisa Su, and many others have visited the country to announce significant investments.
Microsoft employs over 20,000 people in India, spread across 10 cities. The new investment will help the company to further expand its presence in the region by harnessing the skills of local engineers and programmers.
In addition to infrastructure development, the company plans to train 10 million people in India in AI technologies by 2030. By 2023, Microsoft has already trained 2.4 million professionals.
Like other big tech companies, Microsoft is under pressure to prove that the billions of dollars invested in the AI sector are paying off. While many AI projects are still in the process of generating long-term returns, some are already generating revenue. One of the most successful examples is GitHub Copilot, a generative AI tool for developers, which is on track to reach $2 billion in annual revenue in 2023.
Microsoft has received a lot of interest and a positive reaction from local professionals
Hundreds of people gathered at the Microsoft AI Tour event with Nadella. Some waited for several hours to see the technology leader live and to learn about future AI products.
"This is a great opportunity to see the latest AI technologies before they hit the market," said software engineer Prashant Bhanawat, one of the participants.
Why is Microsoft doubling its investment in India?
Talented workforce - India has one of the world's highest numbers of IT and AI professionals.
- Lower operating costs - India's AI and cloud computing infrastructure is cheaper than the US and Europe.
- The strategic market for technology development - the country is emerging as a central technology hub, attracting significant investments worldwide.
- Accelerating digitalization - India's business and public sector transformation is creating a massive demand for AI solutions.
Microsoft's investment in India shows that the company is strengthening its position in AI and expanding its cloud computing capabilities to stay competitive in the AI race. India is becoming not only a hub for IT talent but also a leader in AI innovation, and these investments will further accelerate the development of technology in the region.
