Microsoft Backs its $3B AI Support in India with Private and Public Sector Deals

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Microsoft company is a multi-national tech company based in the United States. The company gained a significant impact in the development of personal computers through software like Windows. Since then, it has grown to include internet services, cloud computing, video gaming, and other industries.

Microsoft is the biggest software manufacturer, one of the most valuable publicly traded firms in the United States, and one of the most valuable brands in the world.

In May 2024, Microsoft announced their proposal, a $3.3 billion investment to construct an artificial intelligence hub in southeast Wisconsin. However, worries were expressed that Microsoft's licensing policies would force users to use its services and that its efforts in AI might avoid governmental monitoring.

$3B AI Support in India

Microsoft launched a broad range of artificial intelligence collaborations across India's major sectors on Wednesday. This launch happened a day after promising to invest $3 billion in India over the next two years as it steps up its battle with competitors Google and Amazon.

Satya Nadella, the CEO of the computing giant, revealed deals with five significant companies in the fields of manufacturing, education, financial services, healthcare, and railroads.

This includes a deal with the Indian sector of Electronics and IT, whereby Microsoft will facilitate data collecting and artificial production for the ministry's IndiaAI Mission Datasets framework.

Microsoft 2026 Plans

By 2026, the company plans to train 500,000 people in AI technologies. Additionally, the two will build AI labs in 20 national skill training institutes and create an AI Centre of Excellence dubbed AI Catalysts to encourage AI innovation in rural areas.

Microsoft and government-supported RailTel have partnered for five years to promote "digital, cloud, and AI transformation" in Indian railways. Apollo Hospitals intends to create artificial intelligence "copilots" for medical services.

By 2026, Bajaj Finance, the biggest non-banking financial firm in India, anticipates implementing AI to save $18 million annually. Microsoft and edtech firm Upgrad will collaborate to develop workplace AI solutions.

Contract With Nvidia

The effort coincides with Nvidia signing agreements to supply AI processors to India's biggest corporations, and Google and Amazon are fighting for Indian enterprises by expanding their AI offerings.

Jensen Huang, the CEO of Nvidia, revealed plans to develop AI infrastructure in collaboration with the Indian conglomerate Reliance Industries. In order to deploy thousands of its H100 chips, the chip designer also inked agreements with Yotta Data Services and Tata Communications.