Big Tech Pours Billions Into India as AI Race Intensifies

Big Tech has once again reaffirmed its interest and high expectations of AI after investing more than $50 billion in AI in India. According to a report by the BBC, it all happened in just one day, and it marked a major turning point for the country’s tech goals.

Big Tech Is Betting On India

The report noted that Microsoft promised $17.5 billion over four years to develop massive data centers in the country, add AI to public services, and train millions to perform tech jobs. Amazon doubled down, responding with a $35 billion promise by 2030, which adds to its previous $40 billion regional spending by increasing AI tools, export capabilities, and logistics networks.

Apart from Amazon and Microsoft, Intel also said it would start making chips in India to capitalise on the growing demand for AI and PCs. With over a billion internet users and no AI giants of its own, India is extremely appealing to foreign tech firms seeking to capture its market, especially since it already offers world-class IT talent driving app development.

BBC also noted that the announcements come at an interesting point in time, as right now, the fear of an AI bubble is sweeping global markets, and tech stock valuations have soared. However, amid all of it, several leading brokerages have taken a contrarian view on India’s AI landscape.

Jefferies’ Christopher Wood, for example, said that the country’s stocks were a “reverse AI trade,” which basically suggests that India could, and likely will, outperform other markets if the AI trade suddenly unwinds.

HSBC seems to share this opinion, believing that Indian equities offer a hedge and diversification for those concerned about the current AI rally.

India’s Position In The AI Race

These statements came as Mumbai stocks have lagged behind their Asian counterparts over the last year, as many foreign investors started moving billions into Korean and Taiwanese AI firms. Now, amid all of it, Microsoft and Amazon made a big move into India, leaving many confused about the country’s position and role in the AI race.

While it does not have its native AI giants, India was quick to adopt AI tech, with massive investments in local data centers and chip-making facilities.

The country’s government also launched an AI mission about a year and a half ago, which set up a goal of supplying startups, universities, and researchers with high-end chips to develop large local models like DeepSeek and OpenAI.

For now, India still lacks the computational infrastructure and billions of dollars worth of R&D that other global superpowers like China and the US have been pouring into the sector for decades, but it is clear that it is trying to catch up.