AI

Amazon, Microsoft unveil over $50bn in new AI investments for India

10 December 2025
4 minutes
Amazon and Microsoft have announced separate AI investments in India, aimed at advancing innovation and creating new jobs.

Amazon has committed $35 billion to support business growth and drive three key priorities: AI-led digitisation, export expansion and large-scale job creation.

The announcement was made at the sixth Amazon Smbhav Summit in New Delhi, where a new Economic Impact Report from Keystone Strategy highlighted Amazon’s growing influence in India’s digital economy.

According to the report, the technology giant’s investment will cover employee compensation, technology development, fulfillment centres, data centres, transport infrastructure and digital payments.

In addition, Amazon Web Services (AWS) is expanding AI adoption across both the public and private sectors in India, introducing new agentic AI capabilities designed to accelerate modernisation.

Amazon’s broader AI initiatives also include efforts to empower 15 million small businesses and provide AI literacy to four million students by 2030.

Amit Agarwal, Amazon’s senior vice president for emerging markets, said: “We are humbled to have been a part of India’s digital transformation journey over the past 15 years, with Amazon’s growth in India perfectly aligned with the vision of an Atmanirbhar and Viksit Bharat.

“We have invested at scale in the physical and digital infrastructure for small businesses in India, creating millions of jobs, and taking Made-in-India global.”

Agarwal added: “Looking ahead, we’re excited to continue being a catalyst for India’s growth, as we democratise access to AI for millions of Indians and quadruple cumulative e-commerce exports to $80 billion by 2030. In 2030, Amazon businesses will support 3.8 million direct, indirect, induced and seasonal jobs.”

Additionally, Amazon is not the only technology giant investing in AI in the region.

This comes as Microsoft has announced a $17.5 billion investment to help “drive AI diffusion” over four years, from 2026 to 2029.

The funding will expand India’s cloud and AI infrastructure, support large-scale skilling programmes and strengthen Microsoft’s ongoing operations.

This commitment follows the $3 billion investment announced earlier in 2025, which is expected to be fully deployed by the end of 2026.

The new announcement came after Microsoft chairman and CEO Satya Nadella met Prime Minister Narendra Modi to discuss India’s AI strategy and national growth priorities.

Microsoft added its investment is built on three pillars: scale, skills and sovereignty.

Shri 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.”

Puneet Chandok, President, Microsoft India and South Asia, said: “Microsoft has been part of India’s fabric for more than three decades. As the nation moves confidently into its AI-first future, we are proud to stand as a trusted partner in advancing the infrastructure, innovation and opportunity that can power a billion dreams.  

“Building on the $3 billion investment announced in January 2025, our new $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.”

RELATED STORIES

Who is Amar Subramanya, Apple’s new VP of AI poached from Microsoft?

Microsoft to spend $3bn expanding AI and cloud infrastructure in India

Amazon commits $15bn to boost Indiana data centre infrastructure

ITW Asia 2026

02 December 2026

ITW Asia brings together the whole connectivity and digital infrastructure industry to get business done. Join 1700+ leaders from carriers, MNOs, cloud solution providers, hyperscalers, content service providers, data centres, satellite operators, investors, regulatory authorities and more, to define the future of connectivity in Asia.