Satya Nadella Meets PM Modi, Microsoft Commits $17.5 Billion to Power India’s AI-First Future

Microsoft Chief Executive Officer Satya Nadella on Tuesday met Prime Minister Narendra Modi and announced a landmark investment of US$17.5 billion to support India’s rapidly expanding artificial intelligence ecosystem. Describing it as Microsoft’s “largest investment ever in Asia”, Nadella said the commitment is aimed at helping India realise its vision of becoming an “AI-first” nation.

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Following the meeting, Nadella posted on X that his discussion with PM Modi focused on India’s vast AI opportunity. He said the investment would go towards building advanced digital infrastructure, strengthening AI-related skills, and developing sovereign capabilities essential for India’s long-term technological growth. The funding marks a major expansion of Microsoft’s footprint in a country it sees as central to its global AI strategy.

Prime Minister Modi welcomed the announcement, calling the discussion with the Microsoft CEO “very productive”. In a post on X, the Prime Minister said the world is increasingly optimistic about India’s potential in artificial intelligence and expressed satisfaction that Microsoft has chosen India for its largest-ever investment in Asia. Modi added that India’s youth would play a critical role in leveraging AI to drive innovation and contribute to a better planet.

The investment comes at a time when global technology giants are aggressively expanding their AI presence in India, attracted by its massive internet user base, strong digital infrastructure and deep talent pool. Microsoft has indicated that part of the funding will be used to set up new data centres, further strengthening India’s cloud and AI backbone.

This is Nadella’s second visit to India in 2025. Earlier this year, the Microsoft CEO had announced plans to invest $3 billion over two years in AI and cloud infrastructure during a previous meeting with PM Modi. The latest $17.5 billion commitment significantly builds on that pledge.

India has emerged as a key battleground in the global AI race. In October, Google announced a $15 billion investment to establish its largest AI hub outside the United States in Andhra Pradesh, highlighting growing international confidence in India as a global AI powerhouse.