GDP growth will be correlated with tokens per rupee per watt: Nadella Satya

Microsoft CEO Satya Nadella said that the global “token factory” — the computing power and AI data centres that process AI models — will have a strong link to a country’s GDP growth. He was speaking at a Microsoft event in New Delhi on Wednesday.

Nadella explained that “tokens”, the small pieces of data that AI models learn from, are becoming central to economic progress. More tokens mean better AI performance, but also require more computing power.

He said the key formula for the future is “tokens per rupee per watt”, meaning how efficiently a country can generate AI output using cost and energy. Improving this efficiency, he said, will directly impact areas like healthcare, education, public services, and business competitiveness.

Microsoft recently announced a $17.5 billion investment to expand AI and cloud infrastructure in India — the company’s largest investment in Asia. Nadella stressed that countries that adopt new technology fastest, not those that merely create it, will lead the next wave of innovation.

He also said that keeping humans involved in AI systems will be crucial for responsible AI deployment.

Nadella highlighted that Microsoft Copilot now processes all data within India, ensuring data sovereignty. During his visit, he also met Adani Group chairman Gautam Adani, whose company is partnering with Google on a $15 billion AI data centre campus in Visakhapatnam.

Nadella announced that Microsoft will bring advanced AI features to two government platforms under the Ministry of Labour and Employment — e-Shram and the National Career Service (NCS).