Alphabet (NASDAQ:GOOG) CEO Sundar Pichai vows to keep hiring engineers into 2026 as AI investments ramp, saying human talent remains crucial amid Google's $100 billion-plus AI push.

Speaking at Bloomberg Tech in San Francisco, Pichai said engineering headcount will grow from current levels into next year, believing more engineers will boost productivity by automating mundane tasks.

The comments come as peers retrench: Microsoft (NASDAQ:MSFT) cut hundreds of roles after its largest layoff in years, and Intel (INTC) joined the wave, with 137 tech companies shedding 62,114 jobs so far in 2025 per Layoffs.fyi.

Though Google itself has trimmed staff in recent years, Pichai argued AI still makes fundamental coding errors, underscoring the need for engineers to oversee model development. Are we on an absolute path to AGI? I don't think anyone can say for sure, he said, highlighting uncertainties around artificial general intelligence.

As Google integrates AI more deeply into Search, publishers fear traffic losses from AI-generated answers, but Pichai assured that Google will continue directing users to websites. We designed AI Overviews to prioritize high-quality outbound links, and years from now that's how Google will work, he noted.

Although tech layoffs have eased, sector cuts underscore headwinds. Pichai's emphasis on engineering investment signals that Alphabet sees personnel as a moat against rivals. Meanwhile, Meta Platforms' (NASDAQ:META) CTO Andrew Bosworth said Silicon Valley is now more open to supporting U.S. military projects, referencing Meta's partnership with Anduril Industries to supply XR gear for the Army.

Investors should watch whether Alphabet's engineering investments pay off as rivals cut costs, because talent retention could determine AI competitiveness. Investors will eye Alphabet's Q2 earnings and headcount data when reported next month.

This article first appeared on GuruFocus.