Nadella says Microsoft will invest $3 bn to boost AI infrastructure, skilling in India

Microsoft chairman and chief executive officer (CEO) Satya Nadella said his company plans to invest $3 billion in cloud and artificial intelligence (AI) infrastructure and skilling initiatives over the next two years in India.

“India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country,” Nadella said during the Microsoft AI Tour in Bengaluru.

“The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first and will help ensure people and organizations across the country benefit broadly,” Nadella said.

The funding will be used to set up data centers to improve Microsoft’s AI and cloud capabilities in India. Additionally, as part of its ADVANTA(I)GE India program, the company plans to train 10 million Indians in AI skills by 2030.

“In the last 12 months, Microsoft has been a copilot in making AI a reality in India, taking it from boardrooms to classrooms, commerce to communities, and finance to farmers,” Puneet Chandok, president of Microsoft India and South Asia, said at the event.

“Today’s announcement strengthens our belief in India’s potential and our resolve to equip the country with the resources and future-ready skills needed to excel in the global marketplace,” Chandok added.

Microsoft Research (MSR) Lab announced the launch of an AI Innovation Network to bridge the gap between research and real-world applications by promoting collaborations with digital-native organizations. Microsoft also announced it entered into a strategic memorandum of understanding (MoU) with SaaSBoomi, a business-to-business startup community.

The partnership with SaaSBoomi seeks to speed up growth of India’s AI and SaaS ecosystem, particularly in tier-II cities.

“Over the next five years, Microsoft and SaaSBoomi aim to impact over 5,000 startups and over 10,000 entrepreneurs, upskill more than 150,000 startup employees through focused workshops, foster regional development in 20+ tier II cities, create over 200,000 new job opportunities, and help attract $1.5 billion in venture capital,” Microsoft said in a statement.

“Under the MoU, Microsoft will also support the emergence of more than 50 unicorns and soonicorns; driving advancements in innovation, sustainability, and technological infrastructure,” the statement added.