Google DeepMind Watch posted an update
Google is sacrificing some potential Cloud revenue to make sure DeepMind has the computing capacity it needs for frontier AI research, chief executive Sundar Pichai says. The trade-off puts a price tag on a familiar AI-industry squeeze: cloud customers want more capacity, but Google is reserving some for its own research priorities.
Why it mattersPichai told the Big Technology Podcast that accommodating new customers seeking computing capacity in 2027 would be “incredibly difficult”. Google Cloud’s revenue rose 82% to $24.8 billion in the second quarter, and its contracted backlog was nearly $514 billion, according to Yahoo Finance’s account of his remarks. Google has not disclosed how much revenue it is forgoing. That missing figure is the difference between a striking strategic choice and a costed business plan.
Discuss: Should Google reserve scarce compute for its own AI research, or sell more of it to customers while demand is high?
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