With $17.5 billion investment, its largest in Asia, Microsoft wants to make India AI first

In a year that has already seen global tech heavyweights court India’s growing digital ambitions, Microsoft has gone all in. The Redmond-based technology giant has pledged a staggering $17.5 billion to power India’s AI-first future, its largest investment ever in Asia. The announcement came hot on the heels of CEO Satya Nadella’s meeting with Prime Minister Narendra Modi in New Delhi, marking a major milestone in India’s artificial intelligence journey.
“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 India’s AI-first future,” Nadella posted on X shortly after the meeting.
In a meeting described as “productive” by the Prime Minister, both leaders discussed India’s AI roadmap and growth priorities. Modi later wrote that the country’s youth would “harness the opportunity to innovate and leverage the power of AI for a better planet.”
The discussions set the stage for Microsoft’s most ambitious India play yet, as Nadella’s visit came amid a series of high-level engagements between the government and top global tech CEOs, including Intel’s Lip-Bu Tan and Cognizant’s Ravi Kumar S.
Microsoft said its new investment would span four years, from 2026 to 2029, focusing on three key pillars, scale, skills, and sovereignty. The goal is to build the digital backbone that will make India a “frontier AI nation”, the company said in a post on its website.