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Google CEO Dismisses DeepSeek’s AI Efficiency Claims Amid Q4 Earnings Report
Google CEO Sundar Pichai took a direct shot at DeepSeek’s AI models, stating that they are less efficient compared to Google’s Gemini 2.0 Flash models. This statement comes in the wake of DeepSeek’s shockwave across the AI industry, with its low-cost AI models reportedly rivaling OpenAI and forcing a historic $600 billion drop in Nvidia’s market value.
Despite acknowledging DeepSeek’s technological progress, Pichai insisted that Google’s full-stack AI approach, powered by custom Tensor Processing Units (TPUs), gives it a superior efficiency edge. He emphasized that AI computing costs will continue to drop, expanding the range of viable use cases and strengthening Google’s long-term AI strategy.
Google Cloud’s Growth and AI Investments
Google Cloud revenues hit $12 billion for Q4, marking a 30% YoY increase, though growth slowed from the previous quarter.
The company has seen record-breaking AI adoption, with 4.4 million developers using Gemini models—double the number from six months ago.
Google announced seven new subsea cable projects and a $75 billion infrastructure investment in 2025 to support AI and cloud computing demand.The AI Battle is Just Beginning
While DeepSeek has rattled the AI world, Pichai framed AI as a “non-zero-sum game,” where multiple players can thrive. However, with rising demand outpacing cloud supply, Google, OpenAI, and DeepSeek are in a fierce race for AI dominance—one that will define the next era of machine intelligence.
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