Google CEO Sundar Pichai says AI spending still makes sense despite bubble fears

Fortune

by Beatrice Nolan

February 19, 2026

AI-Generated Deep Dive Summary

Google CEO Sundar Pichai has reaffirmed his belief in the value of AI investments despite concerns about potential over-investment or "bubble" fears. Speaking at India's AI Impact Summit, Pichai emphasized that current AI development is progressing at an unprecedented pace—10 times faster than previous industrial revolutions—and represents a transformative opportunity for businesses and industries worldwide. He pointed to surging demand for Google Cloud services as evidence of the tangible returns already being realized from AI investments. Pichai also announced several new initiatives in India, underscoring Google's commitment to building a robust AI ecosystem globally. These include a $15 billion America-India Connect Initiative, which expands fiber-optic infrastructure across the U.S., India, and the Southern Hemisphere, as well as a $30 million AI for Science Impact Challenge to fund global research in scientific advancements through AI. Additionally, Google DeepMind has partnered with the Indian government to make frontier AI models accessible for science and education. The summit, attended by over 20 heads of state and representatives from more than 60 countries, highlights India's growing influence as a hub for AI innovation. Companies like Anthropic and OpenAI have also positioned India as a key market, with Anthropic naming it the second-largest for its Claude platform and OpenAI reporting 100 million weekly active users in the country. This aligns with India's push for a "global AI commons"—a collaborative repository of AI tools focused on education, health, and agriculture—a bid to ensure AI development is not overly concentrated in American companies. Pichai's remarks reflect Google's broader strategy to position itself as a key player in shaping the future of AI. By investing heavily in infrastructure, research, and partnerships, particularly in India, Google aims to drive transformative change across industries. The ongoing summit and related announcements underscore how AI is becoming a critical focus for global economic growth and innovation, with India emerging as a pivotal player in this new technological landscape. For businesses, Pichai's comments signal that while the "AI spending spree" may raise concerns about over-investment, the potential returns and transformative impact make it a worthwhile endeavor. As industries across sectors look to leverage AI for growth and efficiency, companies like Google are leading the charge in building the infrastructure and expertise needed to realize this vision.

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Originally published on Fortune on 2/19/2026