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Beyond

Microsoft opens largest India data centre, AI race

Microsoft has opened its largest data centre region in India in Hyderabad, strengthening its cloud infrastructure as demand for artificial intelligence (AI) services accelerates across the country.

The launch of the India South Central region takes Microsoft’s total number of cloud regions in India to four, joining existing facilities in Pune, Chennai and Mumbai. The company said the new infrastructure will give businesses more options to run cloud services and AI workloads within the country.

The move comes as global technology companies compete aggressively to build India’s digital and AI infrastructure. With more than one billion internet users and a large pool of technology talent, India is increasingly becoming an important market for cloud computing and artificial intelligence.

Microsoft’s Hyderabad facility has already attracted several major customers. Adani Group, Bajaj Finserv, HDFC Bank and PB Pay are among the early users of the new data centre region, highlighting growing enterprise demand for cloud and AI capabilities.

For Microsoft, the expansion is about more than simply adding another data centre. The company is positioning its infrastructure closer to the businesses, developers and organisations that are increasingly using AI for everyday operations.

Puneet Chandok, President of Microsoft India and South Asia, said trusted infrastructure needs to be located close to where data is generated and decisions are made. The Hyderabad region is expected to provide that foundation for customers looking to scale their cloud and AI workloads.

The new data centre is part of Microsoft’s much larger investment programme in India. In December 2025, the company announced plans to invest $17.5 billion between 2026 and 2029 in cloud and AI infrastructure, skilling and operations in the country. This followed an earlier $3 billion investment announced in January 2025.

Together, these commitments underline the growing importance of India in Microsoft’s global cloud and artificial intelligence strategy. Microsoft had said the latest investment would support the expansion of hyperscale infrastructure, sovereign-ready solutions and AI skilling initiatives.

The company expects its investment to help businesses, startups, developers and public-sector organisations access the computing capacity needed to adopt AI at scale.

Microsoft’s Azure cloud business has also recorded double-digit revenue growth in India for the past two years, according to the company. The strong demand for Azure services, along with growing adoption of AI tools such as Copilot, has encouraged the company to expand its infrastructure further.

Microsoft’s move also adds momentum to Hyderabad’s emergence as a major data centre hub in India.

Amazon Web Services, Microsoft and Oracle are among the global technology companies expanding their presence in the city through owned infrastructure and partnerships. AWS launched its Hyderabad region in 2022, while Oracle has also announced plans to build data centre capacity in the city.

The growth is being driven by several factors, including rising cloud adoption, enterprise digitalisation, AI workloads and Hyderabad’s established technology ecosystem.

But rapid data centre expansion also brings infrastructure challenges. Large facilities require substantial electricity, reliable networks, cooling systems and connectivity. Industry experts have pointed to the need for stronger power infrastructure and improved connectivity, particularly as data centre campuses expand into peripheral areas.

Knight Frank India executive director Joseph Thilak said India’s data centre industry is moving into a more mature phase, supported by sustained cloud adoption, AI-led computing demand and enterprise digitalisation.

Microsoft’s expansion comes at a time when its biggest technology rivals are also increasing investments in India’s AI infrastructure.

Alphabet’s Google and Amazon are expanding their data centre capacity as they look to capture a larger share of India’s growing AI market. The competition is not limited to cloud storage or traditional computing anymore. Increasingly, companies are building infrastructure capable of supporting AI models, enterprise applications and high-performance workloads.

Microsoft also operates two data centres in India with Reliance Industries’ Jio, further expanding its infrastructure footprint in the country.

For Indian businesses, the expansion could mean greater access to cloud computing capacity, potentially lower latency and more options for running sensitive workloads within the country.

That is becoming increasingly important as banks, financial companies, manufacturers, startups and public-sector organisations experiment with generative AI and other advanced technologies.

The Hyderabad launch therefore marks another significant step in India’s transformation into an AI and cloud computing market. Microsoft is betting that demand will continue to rise as companies move beyond experimentation and begin deploying AI across core business functions.

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Technology

Tech giants push for open-weight AI

Some of the world’s biggest technology companies, including Nvidia, Microsoft and Meta, have joined forces to defend open-weight AI models, arguing that making powerful artificial intelligence models more accessible is essential for innovation, economic growth and maintaining the United States’ leadership in AI.

The companies, along with more than 150 technology firms, startups, research organisations and investors, have signed a joint letter urging the US government to support open-weight AI development rather than impose restrictions that could slow innovation. The appeal comes as policymakers debate tighter controls on advanced AI systems amid growing competition from China and increasing concerns over national security.

The coalition argues that open-weight AI models are becoming a crucial part of the global AI ecosystem because they allow developers, researchers and businesses to build advanced AI applications without starting from scratch. Unlike fully closed AI systems, open-weight models make their trained parameters, or “weights”, available to users, enabling them to fine-tune models for specific industries and use cases while still allowing developers to set licensing conditions.

The companies said this approach has accelerated AI innovation by lowering barriers for startups, universities and enterprises that cannot afford to build large AI models independently. They believe restricting access to open-weight models could weaken the broader AI ecosystem and reduce opportunities for smaller innovators.

The industry’s push comes at a time when the AI race is intensifying globally. Chinese AI companies have rapidly improved their capabilities by releasing powerful open-weight models, prompting concerns that limiting access to similar technologies in the United States could give overseas competitors a significant advantage.

In the letter addressed to US policymakers, the coalition warned that restrictions on open-weight AI could have unintended economic consequences. According to the signatories, hundreds of American companies currently rely on these models to develop AI-powered products and services. Limiting their availability, they argued, would hurt innovation, reduce competitiveness and place thousands of jobs at risk.

The companies also stressed that open-weight AI has become an important driver of entrepreneurship. Startups use these models to build applications across healthcare, education, financial services, software development, manufacturing and scientific research without having to invest billions of dollars in creating foundational AI models from the ground up.

Nvidia, one of the world’s leading AI chipmakers, said open-weight AI has played a key role in expanding the AI ecosystem by enabling developers to innovate more quickly. The company believes that broader access to AI technology encourages experimentation, improves software development and accelerates adoption across industries.

Microsoft echoed similar views, describing open-weight AI as an important element of responsible AI development. The company said making model weights available promotes transparency, collaboration and broader participation while allowing organisations to customise AI systems to meet local business, regulatory and cultural requirements.

According to Microsoft’s definition, open-weight AI models provide access to trained model parameters while giving developers flexibility to inspect, fine-tune and deploy the models. However, they are not the same as fully open-source software, as licensing terms and access conditions may still apply depending on the developer.

Meta, which has released several versions of its Llama AI models under an open-weight approach, has repeatedly argued that accessible AI benefits developers, researchers and businesses worldwide. The company says open-weight models encourage healthy competition and help prevent AI innovation from being controlled by only a handful of large corporations.

Supporters also argue that open-weight AI strengthens cybersecurity because researchers can independently test models, identify vulnerabilities and improve safety measures. They believe greater transparency enables faster identification of potential risks compared with closed systems, where only the original developers have full access.

The debate has intensified following rapid advances in Chinese AI, particularly after the emergence of competitive large language models that have challenged the dominance of American technology companies. Industry leaders fear that imposing stricter rules on domestic AI developers while competitors continue expanding overseas could slow US technological progress.

At the same time, governments remain concerned about the misuse of advanced AI models for cyberattacks, misinformation and other harmful activities. Policymakers are therefore trying to strike a balance between encouraging innovation and protecting national security.

The coalition acknowledged these concerns but argued that responsible governance can coexist with open-weight AI development. Instead of broad restrictions, the companies have called for targeted safeguards, responsible licensing practices and continued collaboration between governments, researchers and industry.

The letter reflects growing consensus across the technology sector that AI leadership will increasingly depend not only on powerful computing infrastructure and advanced chips but also on ensuring developers have access to high-quality AI models that can be adapted for real-world applications.

With governments worldwide preparing new AI regulations, the industry’s message is clear: maintaining access to open-weight AI models, while introducing appropriate safeguards, will be essential to keeping innovation alive and ensuring that the benefits of artificial intelligence are shared across the broader economy rather than concentrated among a few technology giants.

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Leaders

Xbox CEO Asha Sharma announces 3,200 job cuts

Xbox CEO Asha Sharma has announced a major restructuring of Microsoft’s gaming division, with around 3,200 employees set to lose their jobs as the company seeks to build a more focused and sustainable business.

In a message to employees, Sharma said the decision followed lessons from recent investments and highlighted the need to improve efficiency across Xbox operations. She reportedly noted that some investments had not delivered expected returns, with the company losing “64 cents for every dollar” invested in certain areas.

The layoffs will impact teams across Xbox, including game studios and development operations. Microsoft is also reviewing its studio portfolio, with some projects being cancelled or reconsidered as the company prioritises franchises and services with stronger growth potential.

Sharma said the restructuring was aimed at creating a more agile organisation and allowing teams to focus on projects that provide greater value to players and the business.

The move comes as Microsoft continues to reshape its gaming strategy after major investments, including the acquisition of Activision Blizzard and expansion of Xbox Game Pass. The company has been pushing beyond console sales through cloud gaming, subscriptions and multi-platform game releases.

However, the gaming industry has faced growing pressure due to rising development costs, slower market growth and changing player habits. Several global gaming companies have announced layoffs and project cancellations as they attempt to control expenses.

Also Read: Microsoft cuts 4,800 jobs as Xbox restructures

Categories
Beyond

Microsoft cuts 4,800 jobs as Xbox restructures

Microsoft has announced another round of job cuts, affecting thousands of employees as the technology giant restructures its gaming business and reviews operations across the company.

The company is cutting around 4,800 jobs, representing about 2.1% of its global workforce, according to reports. The layoffs are expected to impact several divisions, including the Xbox gaming unit, as Microsoft looks to streamline costs and improve efficiency.

The latest reductions come as Microsoft continues to reshape its gaming strategy following its major acquisition of Activision Blizzard and efforts to expand its gaming ecosystem beyond traditional consoles. The company has been reassessing its studio portfolio, with some game development teams facing closures, changes or possible spin-offs.

Microsoft’s Xbox division has undergone significant changes in recent months as the company focuses on cloud gaming, subscriptions and making games available across multiple platforms. The restructuring reflects a broader shift in the gaming industry, where companies are prioritising profitability, fewer large-scale projects and more sustainable development models.

Employees affected by the cuts are expected to receive support during the transition, while Microsoft said the decisions were taken to align resources with long-term business priorities.

The layoffs follow similar workforce reductions across the technology sector as companies continue to adjust after years of rapid expansion. Rising development costs, changing consumer behaviour and increased competition in gaming have pushed major firms to reassess spending.

For Xbox, the changes come at a crucial time as Microsoft competes with rivals in the console, cloud and digital gaming markets. The company has invested heavily in building a wider gaming ecosystem, but the industry slowdown has led publishers to become more selective about new projects.

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Technology

Windows users to see Copilot added automatically soon

Microsoft is preparing to automatically roll out its Microsoft 365 Copilot app to eligible Windows devices, signalling a major step in the company’s efforts to bring artificial intelligence into everyday workplace operations.

The deployment, expected to begin over the next few weeks, will target business customers using Microsoft 365 applications on Windows systems. Users may find the Copilot app installed on their devices without manually downloading it, as Microsoft plans to make the rollout automatic by default. However, IT administrators will have the option to block or disable the installation if their organisations choose not to participate.

The move reflects Microsoft’s growing confidence in AI-powered productivity tools. The Microsoft 365 Copilot app acts as a central hub for AI features integrated across popular workplace applications, including Word, Excel, PowerPoint, Outlook and Teams. Through these tools, users can generate content, analyse data, summarise information and automate routine tasks.

For many businesses, the rollout could provide easier access to AI capabilities without requiring employees to install additional software. Microsoft believes this approach will encourage wider adoption of its AI ecosystem and help organisations improve efficiency in day-to-day operations.

At the same time, the decision has sparked discussion among IT professionals and enterprise customers. Some administrators have questioned the practice of automatically deploying software, arguing that organisations should have greater control over what appears on employee devices. Others have raised concerns about governance, security policies and the management of AI tools in regulated industries.

Microsoft has stressed that the rollout only installs the application and does not automatically activate premium Copilot services. Users and organisations will still need the required licences and subscriptions to access advanced AI features.

The development comes as competition among technology giants intensifies in the race to integrate artificial intelligence into mainstream software products. Companies are increasingly positioning AI assistants as essential workplace tools rather than optional add-ons.

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Corporate

Microsoft partners with Alt Carbon for carbon removal project

Microsoft has signed a carbon removal agreement with Indian climate-tech startup Alt Carbon, marking a significant step in the tech giant’s efforts to meet its climate goals while highlighting India’s growing importance in the global carbon removal industry.

The deal focuses on a carbon removal technique known as enhanced rock weathering (ERW), a process that captures carbon dioxide from the atmosphere by spreading crushed rock on agricultural land. As the rock naturally breaks down, it absorbs and stores carbon, helping reduce greenhouse gas levels.

Under the agreement, Alt Carbon will generate carbon removal credits through its projects in India, which Microsoft will purchase as part of its broader strategy to become carbon negative. The exact financial details of the deal were not disclosed, but industry observers describe it as a major milestone for India’s emerging carbon removal sector.

Founded by Indian entrepreneurs, Alt Carbon works with farmers to deploy enhanced rock weathering across agricultural regions. The company says the approach not only removes carbon from the atmosphere but can also improve soil health and support agricultural productivity.

The partnership is being viewed as a vote of confidence in India’s climate innovation ecosystem. Until recently, most large-scale carbon removal projects were concentrated in North America and Europe. Microsoft’s decision to work with an Indian startup signals growing international interest in climate solutions being developed in emerging markets.

Carbon removal technologies have become increasingly important as governments and companies seek ways to offset emissions that are difficult to eliminate. Major corporations, including Microsoft, have committed billions of dollars toward achieving ambitious sustainability targets and are investing in a range of carbon reduction and removal initiatives.

India could become a major hub for carbon removal projects due to its large agricultural sector, favourable climate conditions and expanding climate-tech ecosystem. Such projects may also create new income opportunities for farmers participating in carbon credit programs.

For Alt Carbon, the agreement represents a significant validation of its technology and business model. The deal is expected to accelerate the startup’s growth and strengthen India’s position in the rapidly evolving global market for carbon removal solutions.

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Technology

Nvidia teams up with Microsoft on new PC chip

Nvidia has introduced a new processor for Windows laptops, deepening its presence in the rapidly expanding artificial intelligence PC market. The chip, developed in partnership with Microsoft, is expected to power a new line of AI-focused laptops from major manufacturers including Dell and HP.

The processor is designed to bring advanced AI capabilities directly to personal computers, enabling users to run complex AI applications without relying heavily on cloud services. The technology is expected to improve performance in areas such as content creation, productivity, language translation, virtual assistants and other AI-driven tasks.

The launch comes as technology companies increasingly focus on integrating artificial intelligence into consumer devices. Industry leaders believe AI-powered PCs could become the next major growth segment in the personal computing market, driving demand for more powerful and efficient processors.

Microsoft has been encouraging hardware partners to develop devices capable of supporting advanced AI features within the Windows ecosystem. Nvidia’s latest offering aligns with that strategy and expands the range of AI hardware available to PC makers.

Dell and HP are among the first companies expected to introduce laptops powered by the new processor. These devices are likely to feature enhanced AI performance, improved energy efficiency and faster processing for AI-related workloads.

The announcement also reflects Nvidia’s broader effort to diversify beyond its dominant position in data centre and graphics processing markets. The company has emerged as a leading player in artificial intelligence infrastructure, and the latest chip represents an attempt to bring that expertise to everyday consumer devices.

With the launch of its new Windows-focused processor, Nvidia is positioning itself at the centre of the evolving AI computing landscape. The company hopes the technology will help drive a new generation of personal computers built around artificial intelligence capabilities.

The move could intensify competition in the AI PC segment, where several chipmakers are seeking to establish an early advantage. As more software applications incorporate artificial intelligence features, demand for specialised processors is expected to rise.

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Technology

Copilot key on Windows can now be remapped

Microsoft is updating Windows 11 to give users more control over the Copilot key, allowing it to be reassigned instead of always opening the AI assistant.

Introduced in 2024, the Copilot key was meant to provide quick access to Microsoft’s AI tool. However, some users complained it replaced useful keyboard functions and changed familiar layouts.

The upcoming update will allow users to remap the key through system settings. It can be switched to functions like Right Ctrl or the Context Menu key, depending on user preference.

The change is part of Microsoft’s effort to refine its AI integration while keeping traditional keyboard usability intact. The feature will be available directly in Windows Settings in a future update.

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Corporate Uncategorized

Gates Foundation ends Microsoft era with $3.2 bn sale

The Gates Foundation has officially ended its long financial association with Microsoft by selling its remaining shares in the company, worth around $3.2 billion. The sale marks the end of a relationship that has lasted for more than two decades and is closely linked to the fortune created by Microsoft co-founder Bill Gates.

According to reports, the foundation sold its final 7.7 million Microsoft shares, completing a gradual reduction of its stake over the past few years. At one point, Microsoft had been among the foundation’s largest investments, with holdings worth billions of dollars.

The move, however, is not being viewed as a sign of reduced confidence in Microsoft or its business prospects. Instead, reports suggest that the sale is part of the foundation’s larger financial plan as it prepares to increase spending on global charitable work.

The Gates Foundation has been expanding its work in areas such as healthcare, education and poverty reduction. It reportedly plans to increase annual grant spending to around $9 billion, which requires greater cash availability for long-term projects and programmes.

The decision also carries symbolic importance because Microsoft played a central role in building Bill Gates’ wealth. Over the years, Gates gradually moved away from day-to-day involvement in the company and shifted much of his attention toward philanthropy and global development efforts.

Despite the foundation’s complete exit, Bill Gates personally still holds Microsoft shares. The sale therefore appears to be more about financial planning and supporting future philanthropic goals rather than any concerns about the company itself.

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1 Minute-Read

LinkedIn to cut 5% of workforce in latest restructuring

LinkedIn, owned by Microsoft, is set to lay off about 5% of its global workforce as part of a new restructuring plan.

The cuts are expected to affect several hundred employees across different teams as the company reshapes its operations to focus on priority areas and future growth.

Even with the job reductions, LinkedIn has reported revenue growth in its recent performance, showing continued demand for its services.

The company said the decision is part of regular organisational changes and not solely driven by automation or artificial intelligence.

The decision comes amid ongoing job cuts across the global tech industry.