Google CEO Sundar Pichai has said the company is directing limited computing resources to frontier AI research at Google DeepMind rather than fully serving all paying Cloud customers, accepting short-term revenue trade-offs. Speaking on the Big Technology Podcast, he described supporting advanced model development as a priority around which other businesses plan. He noted that infrastructure decisions take years to translate into capacity and that securing compute for new customers looking to 2027 could be particularly difficult. Google Cloud has reported rapid growth, with second-quarter revenue cited around $24.8 billion (up about 82% year over year) and a contracted backlog near $514 billion in recent coverage. Alphabet has guided substantial 2026 capital expenditure for AI infrastructure. Pichai argued that access to advanced compute helps DeepMind build frontier models and that more capable systems can later assist in developing the next generation of models.
Google CEO Sundar Pichai has said the company is directing limited computing resources to frontier AI research at Google DeepMind rather than fully serving all paying Cloud customers, accepting short-term revenue trade-offs. Speaking on the Big Technology Podcast, he described supporting advanced model development as a priority around which other businesses plan. He noted that infrastructure decisions take years to translate into capacity and that securing compute for new customers looking to 2027 could be particularly difficult. Google Cloud has reported rapid growth, with second-quarter revenue cited around $24.8 billion (up about 82% year over year) and a contracted backlog near $514 billion in recent coverage. Alphabet has guided substantial 2026 capital expenditure for AI infrastructure. Pichai argued that access to advanced compute helps DeepMind build frontier models and that more capable systems can later assist in developing the next generation of models.