Given widespread acknowledgment of a potential AI industry bubble, including extended remarks by Pichai in a recent BBC interview, the aggressive plans for AI data center expansion reflect Google’s calculation that the risk of underinvesting exceeds the risk of overcapacity. But it’s a bet that could prove costly if demand doesn’t continue to increase as expected.
At the all-hands meeting, Pichai told employees that 2026 will be “intense,” citing both AI competition and pressure to meet cloud and compute demand. Pichai directly addressed employee concerns about a potential AI bubble, acknowledging the topic has been “definitely in the zeitgeist.”
I mean. we ARE in a bubble. It’s just which bets will pay off and which were lighting money on fire.
I think he caveat to doubling every year is that at some point you might just stop doubling if there is no market for ai.
Quote Citation: BENJ EDWARDS, “Google tells employees it must double capacity every 6 months to meet AI demand - Ars Technica”, NOV 21, 2025 4:47 PM, https://arstechnica.com/ai/2025/11/google-tells-employees-it-must-double-capacity-every-6-months-to-meet-ai-demand/