Pichai: Google forgoes cloud revenue to fund frontier AI research

Sundar Pichai said Google is willing to sacrifice short-term Google Cloud revenue to direct computing capacity toward DeepMind's frontier AI research. He warned that chip shortages will make onboarding new cloud customers extremely difficult until 2027. Alphabet plans to spend $195–205 billion on AI and cloud infrastructure.

• Google prioritizes DeepMind AI research over short-term Cloud revenue
• Adding new cloud customers will be extremely difficult until 2027
• Alphabet plans $195–205 billion in AI and cloud infrastructure spending
• Google Cloud posted $24.8 billion in Q2 revenue with a $514 billion backlog