Alphabet Stock Falls 1% Premarket: Google’s $15B AI Push In India Marks Its Largest Bet Yet On The Country

The AI hub is expected to generate at least $15 billion over five years (2026-2030) in American GDP.

Alphabet, Inc. (GOOGL, GOOG) stock, which bounced back by 3.2% on Monday after last Friday’s 2% pullback, is on track to reverse course. In Tuesday’s early premarket session, Alphabet’s stock slipped about 1%.

The retreat took place despite the Sundar Pichai-led company's confirmation of plans to build an artificial intelligence (AI) hub in Visakhapatnam, Andhra Pradesh. The company said this would enable its Google unit to deploy its full AI stack and accelerate AI-driven transformation across India. 

An announcement to this regard was made on Tuesday at Bharat AI Shakti, an event hosted by Google in New Delhi, and a pre-event to the  India-AI Impact Summit 2026. The new AI hub would come up with an investment outlay of $15 billion over five years, an increase compared to the $10 billion proposed outlay, as reported by the Economic Times last week. The commitment would mark Google’s largest investment in India to date. 

In a post on X, Pichai called it a “landmark” development, adding that “This hub combines gigawatt-scale compute capacity, a new international subsea gateway, and large-scale energy infrastructure.” “ Through it, we will bring our industry-leading technology to enterprises and users in India, accelerating AI innovation and driving growth across the country.” The Google chief also said he spoke with India’s Prime Minister Narendra Modi to discuss the investment.

Citing an analysis conducted by Access Partnership and commissioned by Google, Alphabet said the AI hub is expected to generate at least $15 billion over five years (2026-2030) in American GDP because of new economic activity from increased cloud and AI adoption, as well as the American talent and resources involved in developing and operating the AI hub.  

Thanking Alphabet for the investment, India’s IT Minister Ashwini Vaishnaw said, “I would like the industry to help re-skill and upskill our IT professionals in a major way, and thank Google for making this a major part of their agenda. AI services are emerging as a totally new category in our digital economy, and we look forward to this new facility being used for developing our youth for AI services.”

Alphabet’s Class A stock has gained about 30% so far this year. On Stocktwits, retail sentiment toward the stock remained ‘bullish’ as of early Tuesday, and the message volume was at ‘normal’ levels.

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