Alphabet plans millions of Bengaluru sq ft, signs 5-year AI deal with Liberty Global and Waymo raises $16B
Alphabet plans to lease millions of square feet of new office space in Bengaluru as part of a major India expansion after US visa rules tightened. Its Google Cloud unit secured a five-year Liberty Global agreement to deploy Gemini AI across 80 million European connections, while Waymo raised $16 billion at a $126 billion valuation.
1. Alphabet Unveils Ambitious India Footprint Expansion
Alphabet has initiated plans to lease up to 5 million square feet of office space in Bengaluru over the next three years, positioning the city as its second-largest global hub. The Google parent aims to quadruple headcount in India from 15,000 to 60,000 employees by 2028, driven by accelerating demand for cloud services, artificial intelligence development and local product engineering. The real estate commitment, spread across four new campuses, underscores Alphabet’s strategy to diversify its talent base as U.S. visa policy tightens, while reinforcing India’s role in the company’s global R&D network.
2. AI Enthusiasm Fuels Alphabet’s Share Rally
Over the past six months, Alphabet’s share count has climbed by 80%, outperforming both the broader technology sector and the S&P 500. Investor appetite has been fueled by the rollout of Gemini 1.5, which has surpassed 100 million active users, and the integration of generative AI features across Search, YouTube and Google Workspace. Analysts at Visible Alpha report that daily active queries leveraging AI modes now account for 30% of total Search traffic, up from 12% a year ago, marking the fastest technology adoption curve in the company’s history.
3. Search and Cloud Momentum to Propel Q4 Results
Bank of America Securities forecasts that fourth-quarter revenue will rise by mid-teens year-over-year, driven by a 20% gain in cloud infrastructure services and double-digit growth in search advertising. Google Cloud has secured contracts worth over $3.8 billion in the quarter, including new deals with three Fortune 50 retailers. Search division headcount grew 18% sequentially, with AI-driven ad formats capturing 25% of total ad impressions, compared with 10% in the prior year, indicating a rapid monetization of new generative ad units.
4. Liberty Global Locks In Five-Year Gemini AI Deployment
In a landmark deal, Liberty Global will deploy Alphabet’s Gemini AI across its European operations serving 80 million connections. The five-year agreement, valued at $1.2 billion in annual cloud spend, covers AI-driven search and discovery features on the Horizon TV platform, automated customer-service bots and integration of Pixel hardware into retail channels. Justin Post of Bank of America Securities notes that the contract enhances Google Cloud’s European footprint by 40%, underscoring Alphabet’s strategy to leverage AI as a competitive differentiator in telecom and media markets.