Google has directed most of its artificial intelligence(AI) investments toward building technical infrastructure.
The company’s APAC head of AI and emerging tech policy Eunice Huang, at a panel discussion at the Reuters NEXT Asia summit in Singapore, commented, “As our CEO has said, in these early days of a very transformative technology, the risks of under investing are dramatically higher than the risks of over investing.”
Google’s Pichai committed $75 billion in AI data centres
Despite uncertainties surrounding US tariffs, Google said in April it would allocate $75 billion this year to scale up its data center capacity. Ideally, the company hoped it could calm investor concerns and show that its AI plans were accruing solid returns.
At the Google Cloud Next 25 in Las Vegas, Alphabet CEO Sundar Pichai also affirmed that this investment would bolster enterprise customers’ expanding AI demands and strengthen Google’s core services. He added that the company will work on building infrastructure that moves at Google speed, with near-zero latency, to support services like search, Gmail, and Photos for billions of users worldwide.
Although Google is not backing down from AI, its competitors have lessened their AI investments. Microsoft, which had previously pledged to spend over $80 billion on AI infrastructure in 2025, has since pulled the plug on certain data center developments in the US and Europe.
Abhivyakti Sengar, practice director at Everest Group, commented on the matter, saying he noticed a shift in the hyperscale strategy. He argued that although Google maintains its AI-first focus, Microsoft is now signaling a more regionally targeted and cautious strategy, which could influence other enterprises’ decisions.
Meanwhile, OpenAI recently revealed it will build its data center capacity to cut down on its dependence on other cloud providers and augment its computing capabilities.
Google started its roll-out of AI Mode in India
On Tuesday, Pichai revealed that the company began its launch of its ‘AI Mode’ for users in India. The feature generates AI responses into a similar Google Search interface, offering AI-generated answers within the familiar Google Search layout. AI Mode is set to provide detailed and informative responses rather than just links, though so far, it’s only available in English. Besides, it allows users to ask single, multi-part questions instead of running multiple searches.
Initially, the feature was available on search labs in June during its testing phase. After receiving positive input, Google has now expanded access, with no sign-up required.
Analyst warns companies could go wrong by spending too much on AI
Google is not the only company still fixated on AI; other startups and corporations still want to be a part of the incoming revolution. Chris V. Nicholson, an investor with the venture capital firm Page One Ventures, explained that most companies diving into AI technologies are just afraid of being left behind.
Some AI experts have cited the massive risks of investing in AI, especially given how costly it can be to build its infrastructure without knowing if it will live up to expectations. However, some believe the bigger risk lies with not maintaining a competitive edge with your rivals, seeing that you could lose your standing.
Jordan Jacobs, a partner with venture capital firm Radical Ventures, cautions that companies could go wrong by spending too much on AI and not just with the case of too little.
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