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.

Microsoft is planning to invest about $80 billion in fiscal 2025 on developing data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications, the company said in a blog post on Friday.

Microsoft CEO Satya Nadella announces a $3 billion investment in India's cloud and AI infrastructure, including new data centers. The company aims to train 10 million people with AI skills by 2030, highlighting AI's diffusion in India as exciting and emphasizing the need for innovative infrastructure.

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.