Satya Nadella Commits $17.5 Billion to Accelerate India’s AI-First Future After Meeting PM Modi

In a major boost to India’s Artificial Intelligence (AI) ambitions, Microsoft CEO Satya Nadella revealed a USD 17.5 billion investment aimed at strengthening the technological backbone required to drive the nation’s AI-first future. The commitment marks Microsoft’s largest-ever investment in Asia and highlights India’s growing significance in the global tech landscape.

Nadella made the announcement on X shortly after meeting Prime Minister Narendra Modi at his official residence in New Delhi on Monday.

“Thank you, PM @narendramodi ji, for a thought-provoking discussion about India’s AI potential. Microsoft is pledging USD 17.5 billion, our largest investment in Asia, to assist in building the infrastructure, expertise, and sovereign capabilities required for India’s AI-first future,” Nadella posted.

Responding to Nadella’s announcement, pm modi said their interaction was “productive” and reiterated that the world is looking at India with high expectations in AI and digital transformation.

“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 Prime Minister wrote on X.

PM Modi added that India’s youth will “harness this opportunity to innovate and leverage the power of AI for a better planet,” underlining the government’s vision for a digitally empowered economy.

Satya Nadella’s Multi-City India Tour

Satya Nadella’s four-day India tour includes key stops in Delhi, Bengaluru, and Mumbai, where he will meet government officials, industry leaders, and developers to advance Microsoft’s rapidly expanding cloud and AI footprint in India.

Earlier in January, Nadella had announced a separate USD 3 billion investment focused on cloud and AI infrastructure, talent skilling, and ecosystem development. As part of that initiative, Microsoft committed to making India “AI-first” by training 10 million Indians in AI skills by 2030, with special emphasis on youth, women, and residents of Tier-II and Tier-III cities.

One of the significant steps in this direction is the planned launch of Microsoft 365 Copilot with in-country data processing by late 2025. This will ensure enhanced AI data governance for sensitive sectors such as government, BFSI (banking, financial services, and insurance), Healthcare, and public institutions.

India’s Growing Role in Global AI and Cloud Infrastructure

Nadella’s visit underscores India’s emergence as a global hub for AI innovation, cloud deployment, and digital talent. With this new mega-investment, Microsoft aims to deepen cooperation between the United States and India in areas including AI research, digital trade, cybersecurity, and workforce development.

As India accelerates its AI adoption across industries—from digital governance to healthcare and financial services—Microsoft’s renewed commitment is expected to significantly strengthen the country’s technological ecosystem and support its long-term digital transformation goals.