[DEVELOPING] Pichai says Google Cloud is forgoing short-term revenue to prioritize DeepMind compute; Alphabet slips ~2%
In a Big Technology interview published Oct 20, Sundar Pichai said Google Cloud is 'forgoing short-term revenues' because of compute trade-offs favoring frontier AI. He called DeepMind's compute access 'non-negotiable' and said new customer requests for 2027 compute would be 'incredibly difficult' to meet. 24/7 Wall St. reported Alphabet down about 2% to $331.83 on Oct 21 morning while QQQ rose about 1%. No figure was given for how much revenue is being given up. Pichai's comments point to supply limits, not weak demand, as the constraint on cloud growth. Next to watch: whether the trade-off shows up in Alphabet's Q3 cloud numbers.