Will Google Cloud Hike Prices Amid Chip Shortage?

2 hours ago 3

TEMPO.CO, Jakarta - Cloud computing service platform Google Cloud said it's striving to keep its service prices at an appropriate level amid global chip shortages and price hikes. Nevertheless, the company does not rule out the possibility of price adjustments if the component costs continue to rise.

The Country Director of Google Cloud Indonesia, Karim Siregar, said chip shortages affects not only Google, but also all cloud computing service providers (hyperscalers).

"If we look at it comprehensively, the impact is on all hyperscalers as well. So, it's certainly not just Google. As for us, we will try our best to ensure that the prices remain at the appropriate level," said Karim in a press conference in Jakarta on Wednesday, July 15, 2026.

Karim explained that the global computing provider's capacity has been fully booked for the next one to two years, so the current service prices can still be maintained. "But if there is a very significant price spike, then we do need to make adjustments," he said.

Meanwhile, the Vice President of Customer Engineering for Google Cloud Asia Pacific, Moe Abdula, stated that the global tech industry is facing a surge in demand for AI accelerators, such as Graphic Processing Units (GPUs) and Tensor Processing Units (TPUs).

Moe mentioned that Google Cloud is committed to meeting the needs for AI accelerators through the development of internal technology as well as partnerships with collaborators amidst the limited component supply.

"We offer TPUs that we developed ourselves to our customers, and we also offer GPUs," said Moe. "We are a strong partner of NVIDIA, and we provide GPUs. So, there is no worry or issue at the moment in meeting this demand."

Moe stated that Google has been developing TPUs for a long time in response to the growing computational needs for AI technology. He added that the demand for AI computation is much larger than conventional computing systems, which has driven the company to develop specialized accelerators.

"What I can say is that at Google, we have been creating TPUs for a long time, when we realized that AI systems require something different," he stated.

He also added that GPUs are still necessary in several regions because not all data centers are designed to support the use of TPUs. Therefore, Google continues to partner with NVIDIA as a GPU supplier to meet customer needs.

Read: Google Cloud and Indonesian Government Launch AI Accelerator for Startups

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