Negative impactCompany
Google CEO Sundar Pichai says company is giving up short-term cloud revenue to prioritise advanced AI development
Mint 2 hrs ago·26 Oct 2026, 11:03 am
Google’s chief executive Sundar Pichai said the company is deliberately curbing short‑term revenue from its Cloud business to free up computing resources for DeepMind’s advanced AI research. By allocating more of its data‑center capacity to AI experiments, Google expects to accelerate the development of next‑generation models, even if it means slower growth in cloud services for now.
The move matters because cloud services are a major profit driver for Alphabet, and any dip in that segment can weigh on quarterly earnings. At the same time, leadership believes that breakthroughs in AI could create higher‑margin products and new revenue streams that outweigh the temporary cloud slowdown.
Investors should keep an eye on how quickly Google can translate the extra AI compute into marketable offerings, any updates on cloud capacity planning, and guidance from the company on when the cloud segment is expected to resume its growth trajectory.
Excerpt from Mint
Google CEO Sundar Pichai has said the company is giving up potential short-term revenue from its Cloud business to ensure its researchers have enough computing power to develop advanced artificial intelligence models. Google puts AI research ahead of short-term Cloud revenue The decision highlights the growing…Read the original at Mint
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