Microsoft unveils Rs 1.5 lakh crore AI investment In India after Nadella-Modi meeting
PTC Web Desk: In one of the biggest commitments made by a global technology company to India, Microsoft Chief Executive Officer Satya Nadella on Wednesday announced that the company will invest over USD 17.5 billion (nearly Rs 1.5 lakh crore) to strengthen the country’s Artificial Intelligence (AI) capabilities. The announcement came after Nadella met Prime Minister Narendra Modi in the national capital.
Following the meeting, Nadella posted on X thanking the Prime Minister for what he called an “inspiring conversation” on India’s AI roadmap. “To support the country’s ambitions, Microsoft is committing USD 17.5 billion, our largest investment ever in Asia, to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future,” he said.
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
Prime Minister Modi welcomed the announcement and said global confidence in India’s tech potential continues to rise. “When it comes to AI, the world is optimistic about India,” he wrote, adding that the discussion with Nadella was “very productive”. Modi expressed confidence that India’s youth would harness the new opportunities created by Microsoft’s expansion to innovate and contribute to a better 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… https://t.co/fMFcGQ8ctK — Narendra Modi (@narendramodi) December 9, 2025
In an official statement released soon after the meeting, Microsoft said the new investment will build on an earlier USD 3 billion commitment focused on cloud and AI infrastructure in Bengaluru. That earlier plan includes setting up advanced data centres and large-scale skilling initiatives over the next two years. With the new pledge of USD 17.5 billion spread across four years, the company aims to create the largest hyperscale cloud presence in India.
The statement described India as being at a “pivotal moment” in its AI journey, noting that the country is positioning itself as a “frontier AI nation” driven by rapid adoption of technology and a push for inclusive economic growth.
The announcement also follows a wave of similar commitments from other companies. Recently, Google CEO Sundar Pichai discussed the company’s USD 15 billion investment plan for its AI and data centre hub in Visakhapatnam. Amazon too has invested heavily in Indian data centres, while Qualcomm’s CEO met the Prime Minister in October to discuss collaboration in AI and semiconductor innovation.
The government, meanwhile, continues to stress the need for ethical and human-centric AI, with PM Modi recently highlighting India’s efforts to help shape global AI norms and policies.
- With inputs from agencies
