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Zoho founder: AI quadrupled server prices…no pay raises this year
First seen on X 15 hours ago@svembu ♥ 11,7912 views
Zoho founder Sridhar Vembu said soaring AI costs have pushed the software company to cut marketing spend and skip this year's usual pay raises.
Vembu wrote on X on Oct 12 that AI has raised costs dramatically, citing "a massive 4-fold increase in server prices which we need for data centers" and rapidly growing AI usage. He said he had told employees there would be no raise this year and apologized for it.
"We will work hard to avoid mass layoffs but the outlook for software jobs in general is grim," Vembu wrote, adding that Zoho has not grown its headcount for 18 months. The post passed 11,000 likes and 1.4 million views.
"We are in the middle of reinventing ourselves. The next 3-5 years will decide how our reinvention has worked. Please pray for us," he wrote. Many replies questioned his recent calls for Indians working abroad to come home.
“The business outlook for software is uncertain and AI has raised costs dramatically with a) massive 4-fold increase in server prices which we need for data centers b) AI…”