The tech giant South Asia AI competition escalates: Following Microsoft's $17.5 billion, Amazon announces a $35 billion investment in India

The AI arms race among global tech giants in the South Asian market is heating up rapidly. Amazon has officially joined the fray and is increasing its capital investment, promising to inject a substantial amount of funds into the Indian market to solidify its cloud computing and artificial intelligence footprint in this key growth economy.

According to reports from CNBC and Reuters on the 10th, Amazon announced at the Amazon Smbhav summit held in New Delhi on Wednesday that it will invest over $35 billion in India's cloud and AI sectors by 2030. The investment "strategically aligns with India's national priorities and will focus on expanding AI capabilities, enhancing logistics infrastructure, supporting small business development, and creating job opportunities."

This move highlights the urgency for hyperscale computing service providers to capture market share in Asia's third-largest economy. Just a day before Amazon's announcement, Microsoft had pledged to invest $17.5 billion in AI and cloud infrastructure in India by 2030, marking Microsoft's largest single investment in the Asia region. Meanwhile, Google has also committed to investing $15 billion in building AI data centers over the next five years.

Amazon stated that its investment plan aligns with India's national priorities. The company expects that by 2030, the plan will create an additional 1 million jobs in India, quadruple export volumes to $80 billion, and benefit 15 million small businesses from AI technology, further deepening the e-commerce giant's foundation in this strategic market.

Focus on AI Capacity and Export Expansion

According to the statement released by Amazon, this investment of over $35 billion will build upon the nearly $40 billion the company has previously invested in India. This includes a $26 billion investment plan announced by the company in 2023. Since entering the Indian market in 2010, Amazon has been continuously building fulfillment centers, data centers, and payment infrastructure.

Amit Agarwal, Senior Vice President of Amazon Emerging Markets, stated that the company aims to continue being a catalyst for growth in India, committed to enabling millions of Indians to "access AI widely." The new funds will be dedicated to building a local AI ecosystem.

In terms of specific economic indicators, Amazon has set aggressive growth targets. The company plans to significantly increase the cumulative export volume of Indian sellers from over $20 billion in the past decade to $80 billion by 2030. In terms of employment, the additional 1 million jobs will encompass direct, indirect, and seasonal employment opportunities.

Tech Giants Compete for Strategic Heights

As major tech companies ramp up their bets, India is rapidly emerging as a global strategic center for cloud computing, artificial intelligence, and deep technology growth. Reuters pointed out that as the world's most populous country, India's large and expanding internet user base makes it a key market for Amazon. In addition to competing with cloud rivals from Silicon Valley such as Microsoft and Google, Amazon is also facing fierce domestic competition in the e-commerce sector. To seize market dominance, Amazon is increasing its spending to counter Walmart-backed Flipkart and the retail division of billionaire Mukesh Ambani's Reliance Industries.

The intensive capital deployment by major players indicates that the South Asian market has become a core battleground for global tech companies seeking the next growth frontier. As investments in AI infrastructure continue to escalate, the digital transformation process in the region is expected to accelerate further