After Microsoft, Amazon and Google pledge billions to India’s AI-first future

INDIA: Major US tech giants are betting heavily on India’s AI future. Microsoft announced on Tuesday that it would invest $17.5bn in the country’s cloud and artificial-intelligence infrastructure over four years, its largest-ever investment in Asia. Today, Amazon pledged to pump more than $35bn into India by 2030, building on the $40bn it has already spent since 2010. Google has lined up $15 billion for AI data-centre expansion, adding to India’s growing pull as a destination for high-end digital infrastructure.

Microsoft’s pledge, made after chief executive Satya Nadella met prime minister Narendra Modi, aims to expand hyperscale infrastructure, embed AI in national platforms and train 20 million Indians in AI by 2030, and grow its 22,000-strong workforce in the country. Microsoft’s Azure AI will also be integrated into labour and careers platforms run by the government.

Amazon’s investments will focus on expanding AI capabilities, enhancing logistics infrastructure and supporting small businesses. The e-commerce giant, which competes fiercely with Walmart-backed Flipkart and the retail arm of billionaire Mukesh Ambani’s Reliance Industries, aims to create 1 million additional jobs by 2030. It also plans to boost cumulative exports for Indian sellers from $20bn over the past decade to $80bn by 2030.  

In a statement, Amazon said that its investments are “strategically aligned with India’s national priorities and will focus on expanding AI capabilities, enhancing logistics infrastructure, supporting small business growth, and creating jobs.”

India has also drawn an $8 billion commitment from Amazon Web Services and a raft of chip proposals worth more than $18 billion under its semiconductor mission.

The country’s vast market, swelling digital base and state-funded platforms have turned it into fertile ground for firms seeking scale. A visit by Intel boss Lip-Bu Tan and the chipmaker’s new pact with Tata Electronics underscore India’s determination to catch up in advanced technologies.