After Microsoft And Google, Amazon Commits $35 Billion For AI In India

Following the significant investment commitments made by global tech leaders, Amazon has announced plans to inject over $35 billion into India by 2030. Amazon's move follows the recent multi-billion dollar investment pledges by Microsoft and Google, positioning the American tech giants in a high-stakes race to dominate India's AI and cloud infrastructure landscape.

The announcement came during the Amazon Smbhav Summit, where Amit Agarwal, Senior Vice President for Emerging Markets, outlined the company's vision on Wednesday. Aiming to enhance its artificial intelligence (AI) capabilities and a ramp up export activities.

Surge in Tech Investments: U.S. Giants Eye India's Potential

This year has seen a wave of major investments from leading American technology companies in India, highlighting the nation's rising status as a key center for advancements in cloud computing, AI and cutting-edge technologies.

As reported by Reuters, Microsoft recently committed $17.5 billion for AI and cloud development in India through 2030, representing its biggest outlay in Asia. Similarly, Google has earmarked $15 billion over the coming five years to establish AI-focused data centers.

Strategic Focus: Aligning with India's Growth Agenda

Amazon's funding strategy is designed to support key national objectives in India. The company emphasised in its announcement that the investments will prioritise building stronger AI systems, improving supply chain networks, aiding small enterprises and generating employment.

Amazon said in a statement that investments are "strategically aligned with India's national priorities and will focus on expanding AI capabilities, enhancing logistics infrastructure, supporting small business growth and creating jobs." 

This approach positions Amazon to contribute meaningfully to India's economic expansion.

Intensifying Competition in India's E-Commerce Landscape

To hold its ground against strong local rivals like Walmart-supported Flipkart and the retail division of Mukesh Ambani's Reliance Industries, Amazon has been increasing its expenditures in the region.

Reuters notes that since 2010, Amazon has already funneled $40 billion into India, with an additional $26 billion pledged back in 2023.

Ambitious Targets: Jobs and Exports on the Rise

Looking ahead, Amazon aims to add 1 million more job positions in India by 2030. Over the past decade, the platform has facilitated over $20 billion in total exports for Indian sellers, with a goal to elevate this figure to $80 billion by the end of the decade.

India's vast population and booming online community make it an essential arena for Amazon's global strategy.

Spotlight on the Announcement

In a post on X, Amazon official, Amit Agarwal shared:

"At Amazon #SMBhav today, we announced an additional investment of $35 billion across all our business in India. These will be made through 2030 towards three pillars - AI-driven digitization, export growth and job creation. We will unlock AI for 15 million small businesses, hundreds of millions of customers and 4 million government school children; boost cumulative exports to $80 billion and help create over a million job opportunities in India."

The post added, "We’ve always been at the forefront of #ViksitBharat #AtmanirbharBharat and have been proud drivers of transformation, innovation and development across the country. Grateful for the opportunity to continue empowering every life we touch and play our part in fueling India’s growth."

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