India Can Forge Its Own Future In AI: Microsoft’s Satya Nadella

SUMMARY

Satya Nadella believes that Indian talent and research can enable new breakthroughs in AI frontier that the world can leverage

He called for a balanced approach between open and closed source AI models, and urged the ecosystem to focus on developing India-specific models that can be integrated with global platforms

Nadella announced earlier this week that Microsoft plans to invest $3 Bn towards building up the AI sector, the company’s largest-ever investment in India

Microsoft chairman and CEO Satya Nadella believes India must look to forge its own future when it comes to frontier technology such as AI and foundational models, leveraging its strengths in science R&D and its talent base.

Speaking in a fireside chat with Jitin Prasada, Minister of State in the Ministry of Commerce and Industry, and Ministry of Electronics and Information Technology (MeitY), the Microsoft chief said that capital investment is a real entry barrier, but India has the opportunity to move beyond these restraints by focussing on scientific and mathematical breakthroughs that could change the dynamics of the AI industry.

“I don’t think the last known big breakthrough in AI frontier has happened. I always say we are one mathematical breakthrough away from that entire edifice being thrown out and going after something else,” Satya Nadella said during his short visit to India, where the CEO also met Prime Minister Narendra Modi as well as founders of prominent Indian startups.

When asked whether the central government’s IndiaAI Mission should focus on building models for the Indian market using open source LLMs or build its own AI foundational model, Nadella added that there needs to be a balanced approach, which involves building on existing infrastructure and adding new models to the mix wherever the opportunity comes up. India-specific models can be integrated with global platforms to unlock new applications and services.

Nadella added that India can set the example for the world when it comes to building within the capital constraints. “The real barrier to entry for large language models is the capital investment. You can spend a billion dollars, 10 billion, 100 billion and then a trillion. But India can define its mission as ‘we will do in a billion dollars what has taken $10 billion to build’.”

Doubling down on Microsoft’s strategy around building up AI products and capabilities in India, Nadella announced earlier this week that the company plans to invest $3 Bn towards this sector, Microsoft’s largest-ever investment in the country.

“India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country. The investments in infrastructure and skilling reaffirm our commitment to making India AI-first, and will help ensure people and organizations across the country benefit broadly,” Nadella added.

Microsoft is looking to scale up its data centre operations across India, setting up a fourth facility which will go live in 2026. The company also aims to train 10 Mn people by 2030 with AI skills as part of an initiative launched last year.

Calling India the AI use-case capital of the world, Nadella said that the country is in a unique position to influence events since the combination of digital public infrastructure and private innovation can allow AI to be used at scale.

“In India, AI isn’t just being talked about; it’s being applied—with rapid diffusion and impact. India is unique in combining digital public goods like India Stack with entrepreneurial energy, talent, and demographics,” the Microsoft CEO added.