Amazon and Microsoft have pledged more than $50 billion in investments in India focused on artificial intelligence (AI). Microsoft announced a $17.5 billion investment, its largest ever in Asia, aimed at building infrastructure, skills, and AI capabilities. Amazon plans to invest over $35 billion by 2030, with part of that targeting AI development. Experts note India’s AI adoption is growing rapidly, helped by recent investments in data centres and chip manufacturing. Intel recently partnered with Tata Electronics to make chips locally. The Indian government launched an AI mission to develop a sovereign AI model supporting over 22 languages. However, India’s $1.25 billion AI program still lags much larger projects in France and Saudi Arabia. Challenges include limited semiconductor availability, fragmented data, and shortage of local infrastructure. Despite having 2.5 times more AI-skilled professionals than the global average, India needs better policies to keep and attract top talent. India ranks in the top five globally for startups receiving AI investments, with 74 new AI startups funded last year. But these startups raised $1.16 billion, far less than the US and China. Experts predict India's AI strength will come more from applying AI in entrepreneurship and real-world solutions than building large language models. Government AI apps like Maharashtra’s MahaVISTAAR offer vital services to millions, including farmers. Nandan Nilekani highlights AI’s potential to serve classrooms, clinics, and farms across India. However, India’s traditional IT sector could face disruption from AI, showing signs of slowing growth and stagnating wages. Overall, the big investments from Amazon and Microsoft are a big boost, but India still faces hurdles to fully compete in the global AI race.