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Pichai says Google is shifting cloud computing capacity to frontier AI researchMachine translation

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Google CEO Sundar Pichai said the company is shifting some computing capacity from its cloud business to frontier AI research, giving up some short-term revenue. He also said customers would find it very difficult to secure computing capacity for 2027, citing the two-to-three-year timeline from data-center decisions to operation and surging demand for agent tasks.

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IT Home reported on October 21 that Google CEO Sundar Pichai said today the company is shifting some computing capacity from its cloud business to frontier AI research and development to fully support advances in frontier AI.

For Google, developing frontier AI is costly and requires vast computing resources and chips, but those resources could otherwise be sold at high prices through its cloud business. Pichai said that investing resources in frontier AI research and development is “fundamental” to Google.

The CEO also said that customers seeking to secure computing capacity for 2027 now would face great difficulty, citing the two to three years it takes for a data center to go from decision to operation and a surge in demand for agentic tasks. He explained: “Our cloud business can forgo short-term revenue at any given moment because we are making trade-offs in computing to support the development of frontier AI.”

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