Big tech chooses India as Modi courts AI Leaders, leaving Trump isolated
India witnessed a defining tech moment this week. The world’s biggest technology CEOs lined up to meet Prime Minister Narendra Modi and pledged billions for India’s AI and semiconductor future. These announcements came months after US President Donald Trump urged US-based tech giants to halt investments abroad and keep their money inside America. Yet, Silicon Valley leaders chose to deepen ties with India, signalling a clear strategic shift that undermined Trump’s “America First” warning.
On Tuesday, Microsoft CEO Satya Nadella led the biggest commitment. He pledged $17.5 billion over four years, calling India central to an AI-first global economy. This investment adds to Microsoft’s earlier $3 billion announcement and its decision to expand office space in Hyderabad. Nadella also doubled the company’s plan to train 20 million Indians in AI by 2030. Soon after, Amazon promised investments worth over $35 billion by 2030, most of it aimed at AI expansion. With this move, Amazon will pump a total of $75 billion into India by the decade’s end.
Meanwhile, Google joined the surge. It confirmed a $15 billion data centre cluster in Vizag. These steps underscored a widening belief across Silicon Valley that India offers unmatched opportunities for AI development and cloud expansion.
India also made strong gains in chips. Intel CEO Lip-Bu Tan met PM Modi and backed India’s semiconductor mission. The government has set aside ₹76,000 crore to build local chip manufacturing and design capabilities. Earlier in the day, Intel signed an MoU with Tata Group to make and package chips at plants in Gujarat and Assam. This deal made Intel the first major customer for India’s semiconductor ecosystem.
Cognizant CEO Ravi Kumar S followed next. He discussed plans to expand engineering centres in Chennai and Pune and accelerate AI adoption across Indian industries. He also highlighted job creation as a core goal.
Beyond these meetings, India’s AI push has gained rapid momentum. OpenAI recently opened its first India office in New Delhi. Meta is preparing to launch a new Bengaluru office. Google unveiled its massive Bengaluru campus, while Apple confirmed a $1.5 billion investment as it shifts manufacturing away from China. Lam Research and Nvidia-backed Cohesity also pledged more than $2 billion combined.
This surge reflects a fundamental shift in global tech strategy. In 2025, investors finally began placing long-term AI bets on India. Last year, India saw 74 AI startups raise over $1.16 billion. Although small compared to the US or China, these numbers show rising confidence in India’s innovation landscape.
Trump, however, took a different line. At an AI Summit in July, he demanded loyalty from US companies and pressed them to “put America first.” But Silicon Valley ignored his appeal. Instead, it deepened its engagement with India. Even Trump’s own business group announced up to ₹1 lakh crore in projects in Telangana a day earlier—an irony not lost on political observers.
Big Tech’s shift toward India rests on strong fundamentals: 800 million internet users, hundreds of millions of smartphones, world-class engineers and a rapidly growing startup base. India also provides vast linguistic and cultural diversity, which is essential for training advanced AI models.
In short, global tech leaders now view India not just as a market, but as a strategic hub for the next era of AI.
