Microsoft is set to make a major investment of $17.5 billion (around ₹1.5 lakh crore) in artificial intelligence in India, underscoring the country’s growing role as a hub for AI development in Asia. The announcement came following a meeting between Microsoft CEO Satya Nadella and Prime Minister Narendra Modi, where both leaders discussed India’s AI ambitions and opportunities. Nadella described the interaction as a “productive and inspiring conversation” in a post on X.
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… pic.twitter.com/NdFEpWzoyZ
— Satya Nadella (@satyanadella) December 9, 2025
Highlighting India’s potential in the AI sector, Nadella said the investment will support the development of infrastructure, skills, and capabilities essential for AI growth. The funding will be deployed over the next four years and is in addition to the $3 billion previously announced in January 2025. Microsoft aims to make India its largest AI investment hub in Asia.
When it comes to AI, the world is optimistic about India!
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 youth of India will harness this opportunity to innovate… https://t.co/fMFcGQ8ctK
— Narendra Modi (@narendramodi) December 9, 2025
Prime Minister Modi welcomed the announcement, praising Microsoft for choosing India as the center for its largest AI investment in the region. He said the discussion with Nadella was fruitful and expressed optimism about the role of AI in India, encouraging the nation’s youth to seize the opportunities created by this investment.