GOOGLE CEO DEFENDS $175B-$185B AI SPENDING AMID BUBBLE CONCERNS
Google CEO Sundar Pichai pushed back Wednesday against mounting skepticism over the tech industry's massive AI capital expenditure, arguing the investments remain justified despite growing bubble fears.
Speaking at India's AI Impact Summit, Pichai said AI buildout is advancing "10 times faster" than prior industrial revolutions and represents "a transformational moment." He cited surging Google Cloud demand as evidence returns are already materializing. "The investment makes sense given the economy we are seeing and the opportunities we see," he said.
The defense comes weeks after Alphabet disclosed plans to spend between $175 billion and $185 billion in capital expenditure during 2026—a figure that has intensified investor questions about AI's actual return on investment.
At the summit, Pichai also announced fresh India investments, including a new America-India Connect Initiative for fiber-optic infrastructure linking the U.S., India, and Southern Hemisphere locations, building on a previous $15 billion AI infrastructure commitment. Google also launched a $30 million AI for Science Impact Challenge for global researchers.
The comments signal Google's confidence in AI spending even as Wall Street increasingly questions whether the sector's trillion-dollar buildout will generate proportional returns.
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