Tuesday marked a striking contrast for US President Donald Trump. Just months after he called on American tech giants to curb massive overseas investments and prioritise an "America First" approach, key Silicon Valley leaders—including Microsoft's Satya Nadella and Intel's Lip-Bu Tan—were seen alongside Prime Minister Narendra Modi, announcing multibillion-dollar commitments to AI infrastructure and semiconductor initiatives in India.
In recent weeks alone, major tech firms have committed over $68 billion (roughly ₹6.12 lakh crore), with a heavy focus on AI and related technologies. This surge hardly aligns with the "dead economy" narrative Trump has occasionally invoked, as US companies deepen their stakes in India's growth story.
Adding to the irony, a day earlier in Hyderabad, a representative from Trump Media and Technology Group—Eric Swider—pledged up to ₹1 lakh crore in investments for Telangana's Bharat Future City and related projects. Swider even praised India's ascent, declaring that the country "is on the rise" and "will lead the world in technology."
If inconsistency had a spotlight, this week would shine it brightly on Trump!
MICROSOFT, INTEL BET BIG ON INDIA
On Tuesday, Indian-origin CEO Satya Nadella of Microsoft spearheaded a series of major investment announcements during high-level meetings with Prime Minister Narendra Modi. Microsoft pledged a substantial $17.5 billion over the next four years, representing the company's largest-ever investment in Asia. This commitment is aimed at advancing India's cloud and AI infrastructure, enhancing digital skills, and strengthening sovereign capabilities to support the nation's AI-first future.
In a post on X following his meeting with PM Modi, Nadella stated: “To support the country’s ambitions, Microsoft is committing $17.5 billion—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future.”
This new pledge builds directly on Microsoft's previous $3 billion commitment announced in January 2025. The Redmond-based company, which has placed significant emphasis on AI development, has also doubled its earlier goal by committing to train 20 million Indians in AI skills by 2030. Additionally, Microsoft has already secured 2.65 lakh square feet of premium office space in Hyderabad as part of its ongoing expansion efforts.
Amazon quickly joined the momentum, announcing an investment exceeding $35 billion in India by 2030, with a substantial portion dedicated to enhancing AI capabilities across its operations. This brings Amazon's cumulative planned investments in the country to $75 billion by the end of the decade.
The announcements from Microsoft and Amazon follow closely on the heels of Google's recent $15 billion commitment to establish a one-gigawatt (GW) data centre cluster in Vizag, underscoring the intense focus on building robust AI-driven infrastructure.
In an increasingly data-centric world, semiconductors—often referred to as the new oil—are essential, powering everything from smartphones to critical defence systems and serving as the backbone of modern digital economies.
Arguably the most strategically significant engagement of the day involved Intel CEO Lip-Bu Tan, who provided firm assurances of support for Prime Minister Narendra Modi's flagship semiconductor mission. Under this initiative, the Indian government has allocated Rs 76,000 crore to promote indigenous chip manufacturing and design capabilities.
The meeting took place shortly after Intel formalised a Memorandum of Understanding (MoU) with the Tata Group, positioning the US chipmaker as the first major prospective customer for India's emerging semiconductor ecosystem. The collaboration involves manufacturing and packaging Intel products at Tata's forthcoming fabrication plant in Gujarat and its facility in Assam.
Rounding out the day's discussions was a meeting with Ravi Kumar S, CEO of Cognizant—a US-based multinational IT services company originally founded in Chennai. The conversation centred on broadening Cognizant's footprint in India, with particular emphasis on its key development centres in Chennai and Pune, while accelerating the adoption of AI technologies. Additional topics included creating new employment opportunities and advancing next-generation digital engineering and cloud services.
Also Read: Apple opens 5th India store in Noida, expands retail
THE AI BOOM IN INDIA
The spree of big-ticket meetings offered a clear snapshot of how India was emerging as a pivotal global hub for AI and innovation. However, it was just the tip of the iceberg.
Sam Altman's OpenAI recently opened its first India office in New Delhi. Meta is also set to open a new office in Bengaluru. In April, Google unveiled its new Bengaluru campus -- Ananta, one of its largest offices globally.
Apple had also announced an investment worth around $1.5 billion as the iPhone maker shifts more manufacturing out of China. Besides, Lam Research and Nvidia-backed Cohesity have also pledged $1.2 billion and $1 billion, respectively. For India, 2025 has been the year when its AI ambitions have got a much-needed fillip. So far, foreign investors have stuck to pouring billions into Korean and Taiwanese AI-driven tech companies.
However, since the government launched an AI mission nearly a year and a half ago, its adoption has been rapid. Investments have started trickling for data centres, the physical backbone of AI, and chip-making facilities.
Also Read: Microsoft to invest $17.5 bn in India’s AI future
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