AI burning money causes concern, Alphabet Inc. Class C (GOOGL.US) executives offer reassurance: computing power needs to double every six months to meet demand.

According to reports, a senior executive in charge of artificial intelligence infrastructure business under Alphabet Inc. Class C (GOOGL.US) recently told employees that the company needs to double its computing power every six months to meet demand. Reportedly, Alphabet Inc. Class C Cloud Vice President Amin Vahdat showed a PowerPoint slide during a presentation to employees stating: "We now need to double our computational capabilities every 6 months... increase computing power 1000 times in 4 to 5 years." This statement was made at a meeting on November 6th. Vahdat said, "Competition in artificial intelligence infrastructure is the most critical and expensive part of the AI race. Alphabet Inc. Class C needs to 'achieve at least a 1000-fold improvement in costs, energy consumption, and computing power, storage, and network connectivity, while maintaining the same power and energy levels.' This is not easy, but through collaboration and joint design, we will achieve our goals." Alphabet Inc. Class C's parent company Alphabet CEO Sundar Pichai also attended the same meeting. When asked about the possibility of the artificial intelligence bubble bursting, Pichai admitted that this issue has now become a part of the "zeitgeist," but he reiterated his view that the risk of underinvestment is very high. Pichai stated, "In such moments, there are always challenges, because the risk of underinvestment is quite high. In fact, given the outstanding performance of cloud business data, if we could have more computing resources, the performance of this data would be much better." The report was released one day after technology giant NVIDIA Corporation (NVDA.US) announced better-than-expected earnings and guidance. After the earnings announcement, NVIDIA Corporation's stock initially rose, and management responded to several investor concerns. However, on Thursday, concerns about the bursting of the artificial intelligence bubble continued to linger, causing the gains to disappear. Alphabet is one of NVIDIA Corporation's clients and uses its own tensor processing units for various applications and services.