Amazon's $35 Billion Investment in India's AI and Cloud Market

Amazon has committed to investing over $35 billion in India's cloud and artificial intelligence sectors by 2030. This announcement was made during the Amazon Smbhav Summit in New Delhi. The investment builds on nearly $40 billion already invested in India and is aimed at AI-driven digitization, export growth, and job creation.

Amazon stated that the plan is expected to generate an additional 1 million jobs in India and quadruple exports to $80 billion, benefiting 15 million small businesses. Deepika Giri, IDC's regional head of research for big data and AI, highlighted that India is one of the fastest-growing regions for AI spending in Asia Pacific.

She noted a significant opportunity due to a shortage of suitable compute infrastructure for running AI models. The investment reflects Amazon's strategy to capitalize on India's rapidly growing digital economy, where it has already established fulfillment centers, data centers, and payment infrastructure through its Amazon Web Services subsidiary.

This announcement follows Microsoft's recent pledge to invest $17.5 billion in India's AI infrastructure, illustrating the competitive landscape among big tech companies in the region. Amit Agarwal, senior vice president for emerging markets at Amazon, expressed excitement about continuing to support India's digital transformation journey over the next few years.