Microsoft on Tuesday announced it would invest $17.5 billion in India’s cloud and artificial intelligence infrastructure, making it the U.S. tech giant’s largest investment in Asia. 

The company said that the investments, aimed at expanding hyperscale infrastructure, embedding AI into national platforms, and advancing workforce readiness, will be spread over 4 years, building on its $3 billion pledge made in January. 

The announcement follows a meeting between Microsoft CEO Satya Nadella and Indian Prime Minister Narendra Modi in which the two discussed India’s AI ambitions. Modi met with other tech CEOs on Tuesday too including Intel‘s Lip-Bu Tan.

In a post on social media, Nadella thanked Modi and said that Microsoft’s investments would “help build the infrastructure, skills, and sovereign capabilities needed for India’s AI first future.” 

The move comes as India attempts to catch up on AI, with Modi emphasizing building a comprehensive tech ecosystem and AI sovereignty. The country has also recently attracted data center investment pledges of $15 billion from Google and $8 billion from Amazon Web Services. 

“The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet,” Modi said in a post on X, referring to Microsoft’s investment.

Microsoft plans to use the funds to scale up its existing cloud and AI infrastructure to serve customers across regions in India. It now provides “Sovereign Public Cloud” and “Sovereign Private Cloud” services in several regions.

The company added that it was doubling its January commitment to train 20 million Indians in AI by 2030, with hopes to grow and skill its more than 22,000 employees in the country. 

Microsoft also announced on Tuesday that it would be integrating its Azure AI capabilities into two key digital public platforms of India’s Ministry of Labour and Employment and the National Career Service. 

India’s Union Minister of Electronics & Information Technology Ashwini Vaishnaw called the investment a signal of India’s rise as a reliable global technology partner, accelerating the shift from digital to AI public infrastructure.

While India lags far behind global leaders in advanced technologies like chips and AI, the country’s massive consumer market and public funding have attracted major tech players. 

Under its “India Semiconductor Mission,” the country has approved 10 chip projects with total investments of over $18 billion.

On Monday, American chip designer Intel signed a deal with Mumbai-based Tata Electronics aimed at collaborating on chip offerings in the country, including on products for AI applications.

On Wednesday stateside, the U.S. Federal Reserve is widely expected to lower its benchmark interest rates by a quarter percentage point to a range of 3.5%-3.75%.

However, given that traders are all but certain that the cut will happen — an 88.6% chance, to be exact, according to the CME FedWatch tool — the news is likely already priced into stocks by the market.

That means any whiff of restraint could weigh on equities. In fact, the talk in the markets is that the Fed might deliver a “hawkish cut”: lower rates while suggesting it could be a while before it cuts again.

The “dot plot,” or a projection of where Fed officials think interest rates will end up over the next few years, will be the clearest signal of any hawkishness. Investors will also parse Chair Jerome Powell’s press conference and central bankers’ estimates for U.S. economic growth and inflation to gauge the Fed’s future rate path.

In other words, the Fed could rein in market sentiment even if it cuts rates. Perhaps end-of-year festivities might be muted this year.

Hinge founder Justin McLeod is stepping down as CEO of the dating app to launch a dating service powered by artificial intelligence.

McLeod will be replaced by Jackie Jantos, the dating app’s president and chief marketing officer, Hinge parent company Match Group announced on Tuesday.

“The company’s momentum, including being on track to reach $1 billion in revenue by 2027, gives me full confidence in where Hinge is headed,” said McLeod in a statement. He created the dating app in 2011.

McLeod will remain as an advisor to Hinge through March. Overtone, his new venture, will use AI and voice tools to “help people connect in a more thoughtful and personal way,” according to the announcement.

Along with a dedicated team, McLeod spent much of this year developing the startup with support from Match Group, which said it plans to lead Overtone’s initial funding round in early 2026.

Match Group, which also owns Tinder and various other dating apps, will hold a significant ownership position in Overtone. Match Group CEO Spencer Rascoff will join Overtone’s board.

“We’re proud to have incubated Overtone within Hinge and to now lead its funding round as he builds his next venture,” Rascoff said in a statement.

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