Big Tech Companies Increase AI Investments in India

What Happened?

Google, Amazon, and Microsoft have pledged nearly one hundred billion dollars in AI related infrastructure spending in India since October. Most of those funds are intended to construct gigantic data centers to allow AI platforms to process chatbot queries, and other initiatives include training programs for domestic software talent. 

In addition to infrastructure spending, Open AI and Anthropic have opened offices in India this year. India is scheduled to host an international AI summit in February 2026, which is expected to draw attendees from the biggest tech companies in the world including those from Silicon Valley.

Why it Matters

The increase in AI spending in India is part of a broader global trend of massive investments by tech companies in data centers and other infrastructure needed to run AI platforms like ChatGPT or Gemini. Along with the growth of investments in AI infrastructure has been a rising concern that such investments are fueling an AI bubble, but thus far those fears have not been born out in the market. For India the massive influx of foreign investment pairs nicely with government plans to modernize the Indian economy.

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Under the government of Prime Minister Modi, India has embarked on a large-scale effort to modernize India’s economy by securing the needed resources and infrastructure. India has long been an attractive destination for foreign tech investors due to the large number of highly educated workers still willing to work for lower wages than similarly educated workers in Europe or the United States. Bangalore is a prime example, which since the early 2000s has blossomed into a major hub for tech workers for India.

At the end of 2025 the number of AI users globally grew to nearly one billion and that number is expected to increase next year. Primarily driven by large language model programs like ChatGPT, AI has opened the door to a wide range of commercial activities, especially in the retail sector. During the holiday shopping season in the United States in 2025, the number of people making retail purchases through AI platforms rose eight hundred percent from 2024 levels. 

For India, massive AI investments offer opportunities and dangers. The chance for places like Bangalore to continue their tech growth is high. But the danger is if investment levels come in faster and at higher levels than India can manage, it could also fuel an increase in corruption by both national and local government officials. 

How it Affects You

Globally, AI investments in places like India are a way for big tech companies to spread their infrastructure around the world so that no single country has the power to control their operations. While individual governments may regulate AI and the building of AI infrastructure, tech companies tend to use a global strategy to keep their strategic operations flexible.