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Google CEO Sundar Pichai has defended rising AI investments, comparing them to historic infrastructure projects like railroads and national highways that later drove economic growth. Speaking at the India AI Impact Summit, he described AI as a transformational shift happening at unprecedented speed and scale. Pichai said Google has integrated AI across Search, YouTube, Cloud and emerging businesses, with Google Cloud's order backlog doubling year-on-year to USD 240 million. Alphabet expects capital expenditure of USD 175-185 billion in 2026. He also announced a subsea cable initiative and highlighted India's proposed USD 15 billion AI hub in Visakhapatnam to strengthen digital and compute infrastructure.
Amid rising concerns over a possible artificial intelligence bubble, Google CEO Sundar Pichai has defended large-scale AI investments, comparing them to historic infrastructure projects such as railroads and national highways that later became engines of economic growth. Advertisement
Speaking at a media interaction on the sidelines of the India AI Impact Summit, Pichai said the current phase of AI development represents an extraordinary and transformational moment. He urged business leaders to take a long-term view when evaluating returns on AI spending.
This is the industrial revolution, but 10 times faster and 10 times larger, he said, referring to the scale and pace of change driven by AI technologies.
Pichai drew parallels with foundational infrastructure investments in the United States, noting that projects like the railroad expansion and the National Highway System unlocked long-term economic value. He suggested AI infrastructure should be viewed through a similar lens.
He said Google has been focused on AI development for more than a decade, integrating it across products such as Search, YouTube and Cloud, as well as newer businesses like Waymo and Isomorphic Labs. According to him, these platforms are growing stronger through AI-led improvements.
Highlighting demand trends, Pichai said Google Cloud's order backlog doubled year-on-year to USD 240 million over the past year. He described this as an indicator of rising enterprise demand and potential returns. We are investing to meet that demand, he said.
Alphabet, Google's parent company, expects capital expenditure in 2026 to be between USD 175 billion and USD 185 billion. Spending at the higher end of this range would be more than double last year's capex, intensifying debate around the scale of AI investments across the technology sector.
During his India visit, Pichai also announced a new subsea cable initiative to strengthen AI connectivity between India, the United States and other regions. He outlined partnerships aimed at expanding AI adoption and workforce readiness.
He noted that the recently announced USD 15 billion AI hub in Visakhapatnam, Andhra Pradesh, will include a gigawatt-scale compute facility and an international subsea cable gateway. Additionally, Google DeepMind has partnered with the Anusandhan National Research Foundation to provide access to advanced AI models for scientific research, along with hackathons and mentorship programmes.
Pichai maintained that the scale of investment reflects both technological progress and growing demand, positioning AI as a long-term economic driver.
Source: PTI
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