Microsoft CEO Satya Nadella meets PM Modi, commits Rs 1.57 lakh crore for India’s AI-first future

Microsoft CEO Satya Nadella met Prime Minister Narendra Modi on Tuesday during his second visit to India this year and announced a commitment to invest $17.5 billion (approximately Rs 1.57 lakh crore) over the next four years to strengthen the country’s AI infrastructure and talent capabilities.

Following the meeting, Nadella said he had an “inspiring” conversation with the prime minister about India’s potential to lead the global AI revolution.

“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 wrote in a post on X.

Prime Minister Narendra Modi responded, saying the world is optimistic about India’s leadership in artificial intelligence.

“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 and leverage the power of AI for a better planet,” he wrote.

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

According to Microsoft, the new money will be used to scale cloud and AI infrastructure, skilling programs and ongoing operations, giving the company what it says will be the largest hyperscale cloud presence in India once a new “India South Central” data center region in Hyderabad goes live in mid-2026.

The company will also expand its existing regions in Chennai, Hyderabad and Pune to provide lower-latency services to enterprises, startups and public sector customers.

The US-based tech giant currently employs more than 22,000 people across Bengaluru, Hyderabad, Pune, Gurugram, Noida and other cities.

Notably, Microsoft said it is doubling its earlier pledge and now aims to equip 20 million people in India with AI skills by 2030, after already training 5.6 million since January 2025 through its ADVANTA(I)GE India and Microsoft Elevate programs.

As part of that push, Microsoft partnered with the Directorate General of Training under the Ministry of Skill Development and Entrepreneurship to offer a one-year “AI Programming Assistant” micro-degree across 33 National Skill Training Institutes.

The 1,600-hour course, which requires that at least half of its students be women, is designed to bring AI skills into India’s vocational ecosystem and is already seeing strong placement outcomes at institutes such as NSTI Bengaluru and Indore.

Ashwini Vaishnaw, Union Minister of Electronics & Information Technology said, “As AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty. Microsoft’s landmark investment signals India’s rise as a reliable technology partner for the world. This partnership will set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure.”

“Building on the US$3 billion investment announced in January 2025, our new US$17.5 billion commitment and deep partnership across India’s technology ecosystem are focused on turning India’s AI ambition into impact for every citizen. This transformation is anchored on three pillars: hyperscale infrastructure to run AI at scale, sovereign-ready solutions that ensure trust, and skilling programs that empower every Indian to not just join the future but shape it,” said Puneet Chandok, President, Microsoft India and South Asia.