New Delhi, December 9, 2025 — Microsoft CEO Satya Nadella on Tuesday met Prime Minister Narendra Modi to discuss India’s rapidly growing artificial intelligence (AI) ecosystem, announcing a landmark US$17.5 billion investment to help build and develop the country’s “AI first future.” According to Nadella, this is Microsoft’s largest investment ever in Asia and underscores the company’s commitment to supporting India’s digital ambitions.

In a post on X, Nadella expressed gratitude for the meeting and highlighted the strategic importance of the investment. “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,” he wrote.

Prime Minister Modi welcomed the investment and described the conversation with Nadella as “very productive.” He highlighted India’s growing stature in the global AI landscape and emphasised the role of youth in harnessing this technological opportunity. “When it comes to AI, the world is optimistic about India! Happy to see India being the place where Microsoft will make its largest-ever investment in Asia,” Modi said. He added, “The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet.”

The investment by Microsoft is aimed at multiple strategic areas, including setting up new data centres, enhancing AI infrastructure, and skilling the workforce to leverage AI technologies across sectors. Nadella said the initiative will help build sovereign capabilities in AI, enabling organizations, educational institutions, and individuals across India to benefit from next-generation technology solutions.

This announcement marks Nadella’s second visit to India this year. Earlier in January, he had met with PM Modi and announced plans to invest $3 billion in AI and cloud infrastructure over two years, signalling Microsoft’s long-term commitment to India’s technology ecosystem.

India has emerged as a key global hub for AI innovation in recent years, attracting significant interest from US tech giants. Companies are eager to tap into India’s large internet user base and growing pool of AI talent. In October, Google had announced a $15 billion investment over five years to establish a massive AI and data centre hub in Andhra Pradesh, marking one of its largest investments outside the United States. Google Cloud CEO Thomas Kurian highlighted that the 1-gigawatt data centre campus in Visakhapatnam would be the largest AI hub outside the U.S., reflecting India’s strategic importance in the global AI race.

Analysts say Microsoft’s investment could accelerate India’s position as an AI leader in Asia, fostering innovation across sectors such as healthcare, education, agriculture, and smart cities. The focus on skilling and infrastructure is also expected to create new opportunities for young engineers and developers, aligning with Prime Minister Modi’s vision of leveraging technology for inclusive growth.

With both Microsoft and Google committing multibillion-dollar investments in India’s AI ecosystem, the country is rapidly emerging as a crucial battleground for technology innovation. Experts believe these investments will not only strengthen India’s domestic AI capabilities but also position it as a competitive player in the global AI economy.

The Microsoft investment reinforces India’s strategy of building a robust digital infrastructure, promoting AI adoption, and nurturing homegrown talent to drive innovation. With the government actively supporting technological development through initiatives like Digital India and AI Mission programs, private sector participation at this scale could significantly accelerate the country’s transformation into an AI-first economy.