The “New Electricity”: Microsoft Warns of Deepening AI Divide; Pledges $50 Billion for the Global South
NEW DELHI. Microsoft is making a push to fix the gap in technology between rich and poor countries. The company’s Vice Chair and President Brad Smith said at the India AI Impact Summit 2026 that Microsoft will invest $50 billion by the end of the decade. This money will go towards building intelligence infrastructure training people and supporting local innovation in developing countries.
The world is seeing a gap in AI use between rich countries in North America, Europe and East Asia and poor countries. According to Microsoft’s AI Diffusion Report AI use is twice as high in rich countries as it is in poor countries. This gap could lead to a form of inequality that could last for a long time.
Smith compared this situation to the 20th century when some countries had electricity and others did not. He said that unless we act fast the AI gap will make the economic gap between poor countries even bigger.
The numbers are clear. By 2025 24.7% of people in rich countries were using AI compared to just 14.1% in poor countries. Microsoft says that AI is a technology that can help people work better in many areas from farming to software. If people don’t have access to AI they will struggle to compete in the economy.
To fix this problem Microsoft has a five-part plan.
- Infrastructure: Microsoft will build data centers in countries to provide the computing power needed for AI. The company invested over $8 billion in data center construction year with major hubs in India, Mexico, Brazil and Africa.
- Skilling: Microsoft wants to train 20 million people in countries to work with AI by 2028. In India the company aims to train 20 million people by 2030. Microsoft also launched a program to train two million teachers in India which will help eight million students.
- Language: Most AI systems are trained in English, which puts -English speakers at a disadvantage. Microsoft is investing in projects to develop AI systems that can work in languages, including those spoken in Africa and India.
- Localized Innovation: Microsoft wants to help people in countries solve their own problems using AI. For example in Kenya Microsoft is working with the government and NASA to use AI and satellite images to help farmers.
- Measuring Progress: Microsoft will work with the World Bank to track how AI is being used around the world. This will help governments identify areas where they need to improve.
India is a part of Microsoft’s plan. The country has a community of developers and is becoming a major hub for AI talent. Microsoft has already invested $17.5 billion in India. Is building on that with its new $50 billion pledge.
Some people are concerned that if a country’s AI infrastructure is built on a company’s cloud it could create a new form of dependency. Microsoft says it is committed to working with companies and supporting open-source projects.
The $50 billion pledge is a step towards fixing the technology gap. Microsoft’s message is clear: the world needs to act to make sure that everyone has access, to AI or risk leaving half the planet behind.
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