Microsoft will spend $3 billion to expand its Azure cloud and artificial intelligence (AI) capacity in India, CEO Satya Nadella said on Tuesday, doubling down on a country with tech expertise and low costs to help turn such investments profitable.

Microsoft plans to invest $3 billion to expand its artificial intelligence and cloud services in India. The firm, which has been operating in India for Microsoft plans to invest $3 billion to expand its AI and cloud Azure services in India,

Over half of the investment is reserved for infrastructure. Microsoft President Brad Smith frames AI investment as key to economic growth.

Brad Smith, the Microsoft Vice Chair and President, has revealed how the technology giant plans to move forward with its support for AI technology. The announcement comes as global investment in AI infrastructure is expected to reach $300 billion by 2026.

The company plans to grow the company’s Azure cloud business in India and set up new data centers.

Microsoft Corp. plans to spend $3 billion to expand its cloud computing and artificial intelligence capabilities in India, targeting the world’s most populous country to fuel its revenue growth.

Microsoft India and South Asia president Puneet Chandok said that the company has already trained 2,400,000 Indians since 2024.

As Microsoft pledges $80 billion on data center spending this year, Michael Stewart of M12 - Microsoft's venture arm - says it will be the quality of AI that will matter in the long run. He joins Caroline Hyde on "Bloomberg Technology" to discuss.