India’s AI Boom Attracts Big Tech Billions

Lilu Anderson
Photo: Finoracle.net

India’s AI Aspirations Draw Multibillion Big Tech Investments

Amazon and Microsoft are reportedly investing billions in India’s artificial intelligence (AI) efforts.

Massive Investment in India's AI Effort

India is offering incentives for tech companies to build there, hoping the country’s burgeoning technology market and massive pool of skilled workers will make it a major AI consumer and exporter.

Microsoft has pledged around $3.7 billion to the southern Indian state of Telangana, where it will build data centers aimed at adding 660 megawatts of IT capacity — equivalent to the yearly electricity needs of about 500,000 households in Europe.

Amazon plans to invest around $12.7 billion in cloud infrastructure in India by the end of the decade.

Exciting Tech Market

Puneet Chandok, Microsoft's president for India and South Asia, said, “India today is one of the most exciting markets in the world for tech. The intent is to constantly build capacity in this part of the world to serve customers who are both innovating for India and for the world.”

Leading in Data Center Capacity

Tech companies’ efforts to build their own data centers in India will put the country in the number one spot in terms of self-built capacity for data centers.

This follows reports that Microsoft and Amazon had set aside $40 billion for AI infrastructure projects just this year.

Demand Surge for AI Products

Chipmaker Nvidia reported that demand for its products has been fueled by companies and countries moving from traditional data centers to “AI factories.”

“In Q1, we worked with over 100 customers building AI factories ranging in size from hundreds to tens of thousands of GPUs, with some reaching 100,000 GPUs,” Nvidia Executive Vice President and Chief Financial Officer Colette Kress said.

Changing Job Market

Meanwhile, research shows that 63% of CFOs say that AI technology has reduced their need for lower-skill workers, while it may also require new skill sets. Another 58% of finance chiefs said they need more analytically skilled employees.

Early Stages of AI Revolution

“*Despite the number of organizations already using AI, we are still on the front end of the AI revolution,*’’ PYMNTS wrote. “The numbers findings from our report represent an early dispatch from that revolution. As applications for AI mature, the needs of all companies, large and small, will continue to evolve. However, one thing is clear: we are beginning to see the potential of AI.”

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Lilu Anderson is a technology writer and analyst with over 12 years of experience in the tech industry. A graduate of Stanford University with a degree in Computer Science, Lilu specializes in emerging technologies, software development, and cybersecurity. Her work has been published in renowned tech publications such as Wired, TechCrunch, and Ars Technica. Lilu’s articles are known for their detailed research, clear articulation, and insightful analysis, making them valuable to readers seeking reliable and up-to-date information on technology trends. She actively stays abreast of the latest advancements and regularly participates in industry conferences and tech meetups. With a strong reputation for expertise, authoritativeness, and trustworthiness, Lilu Anderson continues to deliver high-quality content that helps readers understand and navigate the fast-paced world of technology.