“When it comes to AI, the world is optimistic about India,” Indian Prime Minister Narendra Modi said in a post on X, after meeting Microsoft CEO Satya Nadella on Tuesday.<\/p>\n
Amazon’s $35bn investment will build on the $40bn already invested in India – establishing the company as “the largest foreign investor” in India, the company said in a statement. <\/p>\n
A key component of it will go into local cloud and AI infrastructure. <\/p>\n
Microsoft’s fresh commitment follows a $3bn investment announced by the company earlier this year.<\/p>\n
It includes a new “hyperscale cloud region” – a cluster of data centres – in the southern India’s Hyderabad city, set to go live in mid-2026, the company said in a statement.<\/p>\n
Data centres are centralised physical facilities that host computer servers, IT infrastructure and network equipment, and are a key component of the AI value chain that India is focusing on despite concerns around water shortages.<\/p>\n
India will also be given access to Microsoft’s “sovereign public cloud”, which offers tools to help organisations run their data and applications while keeping sensitive information within the country.<\/p>\n
The India investment is part of Microsoft’s $23bn AI expansion across countries including Canada, Portugal and the UAE, as the company vies with rivals such as Amazon and Google.<\/p>\n
In a statement Microsoft said it also aims to integrate AI into Indian government platforms, supporting around 310 million informal workers.<\/p>\n
The announcements come as India steps up activity in semiconductor manufacturing, with several state-backed and private projects aiming to build a domestic chipmaking industry.<\/p>\n
While India is a big market for AI – with a billion internet users and a big tech talent pool – it still lags behind global leaders like China and the US. <\/p>\n
However, the country has been drawing billions in investments in key computing technologies such as chips, with the government’s semiconductor mission offering generous subsidies to firms setting up chip-making facilities.<\/p>\n
India’s sovereign AI model is also expected to be unveiled in February next year. <\/p>\n
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