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Pichai says Google is sacrificing short-term cloud business revenue to support cutting-edge AI research and development
The Block
1h ago
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Google CEO Sundar Pichai stated that the company is shifting some of its computing power from cloud services to cutting-edge AI research and development in order to support the advancement of artificial intelligence. He also mentioned that if customers want to secure computing power for 2027 now, they will face significant difficulties.
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News from the IT Home on October 21st: Google CEO Sundar Pichai stated today that the company is shifting some of its computing power from its cloud business to AI research and development, in order to fully support the development of AI.

For Google, developing cutting-edge AI is costly and requires a large amount of computing resources and chips, which could otherwise be sold at high prices to its cloud business. Pichai stated that investing in research and development in cutting-edge artificial intelligence is "at the very core" of Google.

This CEO also indicates that if customers currently seek to lock in computing power for 2027, they will face great difficulties. The reasons include the fact that it takes two to three years from decision-making to deployment of data centers, as well as a surge in demand for agent tasks. He explained, "Our cloud business is willing to give up short-term revenue at any given time because we are making trade-offs in computing in order to support the development of cutting-edge AI."

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