'AI first future': Microsoft CEO Satya Nadella meets Indian PM Narendra Modi; promises $17.5 billion investment in India

In a major push to accelerate India’s artificial intelligence ecosystem, Microsoft CEO Satya Nadella announced a $17.5 billion commitment to strengthen the country’s AI infrastructure, skills pipeline and sovereign capabilities. This marks Microsoft’s largest investment in Asia to date. Nadella revealed the investment in a post on X shortly after meeting Prime Minister Narendra Modi at his Delhi residence.

“Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing USD 17.5B… to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future,” he wrote. Prime Minister Modi described their interaction as “productive,” expressing confidence that global confidence in India’s AI potential is growing. “Glad to see Microsoft choosing India for its biggest Asian investment,” he said, adding that the country’s youth would drive innovation and use AI to improve the planet.

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See PM Modi's tweet after meeting Satya Nadella

Nadella’s India Tour

The Microsoft chief is on a four-day tour of India, with planned stops in Bengaluru and Mumbai after New Delhi. His visit seeks to reinforce Microsoft’s expanding footprint in India’s cloud and AI markets. Earlier in January, Nadella had announced a $3 billion investment over two years for AI and cloud expansion, along with a strong push to train 10 million Indians in AI skills by 2030, especially women and youth from smaller towns.

A key milestone under Microsoft’s roadmap is the rollout of Microsoft 365 Copilot with in-country data processing by late 2025, ensuring that sensitive data for sectors like government, BFSI and healthcare remains within Indian borders in line with regulatory needs. Nadella’s trip underscores India’s growing role as a global center for AI research, talent and digital infrastructure. Microsoft aims to deepen collaboration between India and the US in AI, digital trade and workforce skilling to support inclusive and sustainable development.