Google's CEO prioritizes AI innovation over short-term cloud revenue

Google's CEO Sundar Pichai stated on October 21, 2026, that the company is redirecting some computing power from its cloud business to support cutting-edge AI research. This shift involves allocating resources that could otherwise be sold at high prices to cloud customers. Pichai emphasized that investing in AI is central to Google's mission. He also warned that customers seeking to secure computing power for 2027 will face significant challenges due to the lengthy time required to build and deploy data centers, which can take two to three years, and the surge in demand for intelligent agent tasks. Pichai explained that the cloud business can forego short-term revenue in favor of long-term computational investments to advance AI development. The CEO highlighted the high costs associated with developing AI, which require substantial computational resources and specialized chips. He noted that these resources are being redirected to support AI innovation, even at the expense of immediate cloud revenue. Pichai's comments underscore Google's strategic focus on long-term technological leadership in the AI field.