New Delhi: In a major move to enhance its presence in India, Microsoft announced plans to invest $3 billion over the next two years to expand its Azure cloud and artificial intelligence (AI) capacities in the country. This investment, the largest ever by Microsoft in India, underscores the tech giant's commitment to tapping into the country’s growing tech expertise and cost advantages to drive profitability.

Satya Nadella, CEO of Microsoft, shared this vision during a recent conference in Bengaluru, a city renowned as India’s tech hub. "India is the second-largest developer community on GitHub after the United States, and it’s projected to be the largest by 2028," Nadella noted, emphasising India’s vital role in the company’s AI initiatives. He highlighted the significant contributions of Indian developers to Microsoft’s AI projects, including GitHub Copilot, a generative AI tool designed for developers.

The announcement comes amidst a wave of high-profile visits and investments by other global tech leaders, including executives from Nvidia and Advanced Micro Devices, who have also recognised India as a key growth market. For Microsoft, which operates across ten Indian cities with over 20,000 employees, this investment aims to strengthen its ties with the local tech community while leveraging the talent pool to advance its AI capabilities.

Beyond infrastructure, Microsoft’s investment will also focus on upskilling the Indian workforce in AI. The company has set an ambitious goal to train 10 million people in AI by 2030, building on the 2.4 million individuals it upskilled in the previous year. This initiative aligns with India’s burgeoning digital economy and the increasing demand for skilled professionals in the AI domain.

As Nadella spoke at the "Microsoft AI Tour" event, hundreds of attendees, including tech enthusiasts and industry professionals, gathered to hear him. Among them was Prashant Bhanawat, a software engineer eager to glimpse Microsoft’s upcoming innovations. “This is a chance for us to see the products in development before they are rolled out, and to obviously see Satya Nadella,” Bhanawat said, reflecting the enthusiasm surrounding Microsoft’s initiatives in India.

Microsoft’s focus on AI and cloud technologies is part of a broader strategy to ensure its investments yield substantial returns. GitHub Copilot has already demonstrated this potential, with Microsoft reporting a $2 billion annual run-rate for the tool in July. The new investment in India, coupled with the existing plans to pour $80 billion into AI-enabled data centres by fiscal 2025, underscores the company’s commitment to maintaining its edge in the competitive AI landscape.

As Microsoft deepens its engagement in India, the country’s role in shaping the future of AI and cloud technologies is set to become even more significant, cementing its position as a pivotal player in the global tech ecosystem.

BI Bureau