India, France turn to leader-level diplomacy to win AI infrastructure bets

Over the past year, Modi has held discussions with Microsoft Chairman and CEO Satya Nadella, Google CEO Sundar Pichai and Intel CEO Lip-Bu Tan, with each expressing support for expanding India's AI capabilities.

As countries race to secure a foothold in the artificial intelligence revolution, French President Emmanuel Macron and Indian Prime Minister Narendra Modi are increasingly relying on diplomacy to attract the world’s biggest technology companies and accelerate investments in AI infrastructure.

Both leaders have intensified outreach to top technology executives this year, seeking commitments for large-scale investments, AI data centres and broader ecosystem development. Their hands-on engagement has distinguished France and India from many other nations competing to build the infrastructure needed to support the next wave of AI innovation.

Macron hosted leading AI executives during the G7 Summit in June and persuaded SoftBank founder and CEO to back a multibillion-dollar AI data centre initiative in France.

Also Read |

Meanwhile, Modi met Amazon CEO Andy Jassy last week and welcomed the company’s record USD 48 billion investment commitment in India, including USD 21 billion earmarked for AI and cloud infrastructure.

Over the past year, Modi has also held discussions with Microsoft Chairman and CEO , Google CEO Sundar Pichai and Intel CEO Lip-Bu Tan, with each expressing support for expanding India’s AI capabilities and digital infrastructure.

In May, SoftBank announced plans to develop 3.1 gigawatts of AI data centre capacity in France by 2031 as part of a broader €75 billion programme aimed at creating 5 GW of AI infrastructure.

According to CNBC, Son revealed that Macron personally requested a meeting two months before the announcement to convince SoftBank to proceed with the investment. The two leaders continued discussions through text messages while finalising the proposal.

Son said Macron highlighted France’s abundant electricity supply—largely generated through nuclear power—and assured SoftBank that the government would support a 3 GW project instead of the initially proposed 2 GW, making the investment more attractive.

“His team, the government team is very supportive,” Son said. “His team and our team work in collaboration very well.”

India’s AI ambitions

Modi also brought together leading American technology executives at the Global AI Summit in India earlier this year, resulting in investment commitments worth hundreds of billions of dollars for the country’s expanding AI ecosystem.

“India does not see fear in AI. India sees fortune in AI. India sees the future in AI,” Modi said in his opening remarks at the summit in February.

He urged global tech leaders to “Design and Develop in India” to deliver to the world.

Building partnerships and attracting capital for AI development has become a central pillar of the government’s technology strategy. While India has made rapid progress in digital infrastructure, it is yet to manufacture cutting-edge semiconductor chips domestically or develop a frontier-scale foundation AI model comparable with those created in the United States or China.

To bridge that gap, the government has been encouraging global technology companies to invest in AI infrastructure, cloud computing and semiconductor manufacturing across the country.

Also Read |

Ahead of the summit, Microsoft announced its largest investment in Asia to strengthen India’s sovereign AI capabilities, while Google unveiled a USD 15 billion investment plan to establish its biggest AI hub outside the United States. To further attract hyperscale data centre operators, the government has introduced long-term tax incentives for companies investing in AI infrastructure.

New Delhi is also promoting domestic semiconductor manufacturing to reduce dependence on imported technology.

During Modi’s visit to the Netherlands in May, Dutch chip equipment maker ASML agreed to provide advanced lithography systems and related solutions for the 300mm semiconductor fabrication plant being developed by Tata Electronics. Intel CEO Lip-Bu Tan, who met Modi in December last year, has also agreed to become a prospective customer for chips produced by Tata Electronics.

Despite these initiatives, India continues to depend heavily on overseas AI models and advanced computing hardware, leaving its AI ambitions exposed to export restrictions and technology controls imposed by other countries.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *

six + 15 =