IT industry not creating new jobs, funds diverted to AI, data centre costs: Sridhar Vembu

Zoho Corporation Founder and Chief Scientist Sridhar Vembu on Sunday said the information technology (IT) industry is not creating many new jobs as funds are being diverted to meet the rising costs of artificial intelligence (AI) and data centre infrastructure.

In a post on social media platform X, Vembu noted that while the IT industry, including Zoho, has avoided large-scale layoffs, it has failed to generate significant new employment opportunities in recent years.

“The money that would have gone to new employees is now going to AI and data centre costs, the latter due to the steep rise in server and memory prices,” Vembu said.