India Reaches $20 Billion in New Cumulative AI Investment Commitments

India’s total investment commitments in artificial intelligence (AI) have crossed $20 billion as of 2025, according to data from the Ministry of Electronics and Information Technology (MeitY). 

The figure includes both ongoing and new investments from the government and private sector, showing continued spending on AI infrastructure, research, and commercial applications.

Growth in Private Investment

Private companies account for a major share of AI-related spending. Google has announced a $15 billion AI data hub in Visakhapatnam, planned over 5 years. TCS plans to invest $5-7 billion in data centres focused on AI within the next 7 years. 

AWS has committed $12.7 billion by 2030 to expand cloud and AI infrastructure in India, and Microsoft has pledged $3 billion for similar initiatives.

Funding for Startups

Private equity and venture capital funding in AI startups has risen steadily. Data from Tracxn shows total funding at $5.3 billion till October 2025, of which $2.37 billion has gone to generative AI companies. The number of startups using AI tools in sectors like finance, healthcare, and education has grown in the past two years.

Public Investment and Infrastructure

The Indian government has allocated $1.2 billion to strengthen domestic AI infrastructure. This includes building GPU-based computing systems and supporting large language model (LLM) development. Several projects under this plan are already in progress, as part of the National Programme on Artificial Intelligence and Digital India initiatives.

India’s Position Globally

According to the Stanford AI Index Report 2025, India’s cumulative private AI investment between 2013 and 2024 stood at $11.1 billion, rising to $12.3 billion with public funding included. India’s overall commitments now place it close to Canada and Israel (around $15 billion each) and ahead of France ($11 billion), South Korea ($8.96 billion), and Japan ($5.9 billion).

Comparison with Other Countries

The United States remains the top investor in AI, with $471 billion in private funding. China follows at $119 billion, while Saudi Arabia has announced $100 billion to develop its AI sector.

Read More: IBM’s Software Division Expands, But Red Hat’s Weak Momentum Hits Stock Performance!

Conclusion

With total AI-related investments crossing $20 billion, India continues to expand its AI capacity through combined efforts from both government and private industry.

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