Tech titan Google (GOOGL) says that it needs to double its computing power every six months in order to keep up with the growing demand for AI, according to CNBC. At a company-wide meeting on November 6, Google Cloud VP Amin Vahdat explained that the goal is to increase AI capacity by 1,000 times over the next 4 to 5 years. He also noted that the race to build AI infrastructure is extremely competitive and expensive.
TipRanks Black Friday Sale
However, Vahdat made it clear that Google isn’t trying to outspend rivals. Instead, the company is focused on building faster, more reliable, and more scalable systems than anyone else. To boost capacity, Google is improving its technology and using more efficient AI models. In fact, it recently launched Ironwood, the seventh version of its custom chip, which is nearly 30 times more energy-efficient than its first chip from 2018. Interestingly, Vahdat added that Google needs to deliver 1,000 times more computing power and storage without using more energy.
Separately, CEO Sundar Pichai told employees that 2026 will be a tough year due to the pressure to meet AI and cloud demand. He also addressed fears of an AI bubble by saying that underinvesting could be riskier than investing too much. For instance, Pichai pointed out that Google can’t roll out tools like its new video generator, Veo, to more users because of computing limits. As a result, CFO Anat Ashkenazi emphasized that the opportunity in AI is huge, and Google can’t afford to miss it.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Google stock based on 31 Buys and seven Holds assigned in the past three months. Furthermore, the average Google price target of $312.00 per share implies 3.9% upside potential.
See more GOOGL analyst ratings
Disclaimer & DisclosureReport an Issue
