Microsoft investing $17.5 billion in India for AI and cloud infrastructure

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Category: Technology/Innovations

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. underscore / ˈʌn dərˌskɔr / (v.) – to make something clear or obvious because it is important
    Example:

    The coach’s speech underscored teamwork as the key to winning the match.


  2. semiconductor / ˌsɛm i kənˈdʌk tər / (n.) – a material used in electronic devices that controls the flow of electricity
    Example:

    The company designs semiconductors for computers and robots.


  3. incentive / ɪnˈsɛn tɪv / (n.) – something, often money or support, that is offered to encourage people or companies to do something
    Example:

    Extra pay can be a strong incentive for workers to do better at their jobs.


  4. dependence / dɪˈpɛn dəns / (n.) – the state of needing someone or something to work, succeed, or continue
    Example:

    The city wants to lower its dependence on private cars by improving public transport.


  5. skilling / ˈskɪl ɪŋ / (n.) – the process of teaching or training people to learn new skills for a job
    Example:

    The factory focuses on skilling workers to use new machines safely.


Article

Read the text below.

Microsoft announced its biggest-ever Asia investment, amounting to $17.5 billion, in India over the next few years to advance the country’s cloud and artificial intelligence infrastructure. CEO Satya Nadella revealed this in an X post after meeting with Indian Prime Minister Narendra Modi in New Delhi.


Nadella said that Microsoft was committing the investments to help India build the “infrastructure, skills, and sovereign capabilities” needed for its AI future. The announcement underscored the growing global competition among major technology companies to expand in India, which has become one of the world’s fastest-growing digital markets.


In October, Google said it will invest $15 billion in India over the next few years to establish its first AI hub in the country. Located in the southern city of Visakhapatnam, the hub will be one of Google’s largest globally.


Nadella was in India on a three-day trip that included discussions with policymakers, as well as participation in AI-focused events in the country’s tech hub, Bengaluru, and financial capital, Mumbai.


India has set ambitious targets to become a leading global hub for AI and semiconductor manufacturing. The government has introduced financial incentives aimed at attracting global chipmakers and major technology companies to strengthen the country’s innovation ecosystem, boost jobs, and reduce dependence on imported technologies.


“When it comes to AI, the world is optimistic about India,” Modi said on X after meeting with Nadella.


Microsoft’s latest India investment plan tops its earlier announcement in 2025 of investing $3 billion in building cloud and AI infrastructure, as well as new data centers and skilling the workforce over the next few years.


The company, which has operated in India for more than three decades, employs more than 22,000 people in the country and has been expanding cloud and data center capacity to support advanced computing needs.


Microsoft said in a statement that it hopes to scale up its ongoing operations across India. It plans to have its largest hyperscale presence in the country with a new data center going live in mid-2026.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • India wants to become a global hub for artificial intelligence and semiconductor production. Why do you think some countries focus heavily on AI development? Do you think it is a good idea? Why or why not? Discuss.
  • In your opinion, what benefits could come from developing AI quickly and becoming an AI global hub? What challenges or risks might arise if a country moves too fast? Discuss.

Discussion B

  • Expanding AI and cloud technology will change the types of work available in the future. Would you want your country to receive a similar investment in AI and cloud technology, as India did? Why or why not? Discuss.
  • The article mentions that Microsoft is skilling its workforce for new roles in AI and cloud technology. In your opinion, what skills would be most important for people to learn to succeed in this industry? Do you think you can learn these skills easily? Why or why not? Discuss.