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Bill McDermott, Chairman, President & CEO ServiceNow, speaking on CNBC’s Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 17th, 2024.

Adam Galici | CNBC

American enterprise software giant ServiceNow announced Monday it plans to invest $1.5 billion in the U.K. over the next five years, in a vote of confidence for Prime Minister Keir Starmer as he looks to attract foreign investment to the country.

The tech firm said the mammoth sum of cash will go toward growing its U.K. business, as it plans to expand with new office space and grow its employee base beyond the 1,000 people it hires in Britain currently.

Beyond local business expansion, ServiceNow also said it would invest the cash into localizing the processing of data for its large language models (LLMs), AI models that rely on vast quantities of training data to be able to understand and generate text like a human.

The firm said that it would bring Nvidia GPUs (graphics processing units) to its data centers based in London and the Welsh city of Newport to support processing of data on its LLMs within the U.K. This will help support “domain specific LLMs” for U.K. clients and governments, ServiceNow said.

Policymakers and regulators in Europe have increasingly been calling for so-called AI “sovereignty.” This refers to the idea that the technologies and data underpinning advanced AI systems should be stored within Europe, and more accurately reflect the culture and history of Europeans.

ServiceNow said it also planned to offer new skills programs in the U.K. that will reach 240,000 learners.

“The United Kingdom is embracing technology transformation at scale. In this new age of AI, the country continues to be a global leader in driving innovation for the benefit of all its communities,” Bill McDermott, ServiceNow’s CEO, said in a statement Monday.

“Our investment accelerates the U.K.’s push to put AI to work, empowering people, enriching experiences, and strengthening societal bonds. Together, ServiceNow and our customers across the U.K. are delivering a future where technology benefits everyone.”   

The announcement was made as part of the International Investment Summit, where U.K. leader Keir Starmer is set to gather 300 business leaders to encourage foreign investment.

ServiceNow, which has a market capitalization of $194.6 billion, has seen its shares climb over 37% this year, thanks in no small part to the hype surrounding AI.

ServiceNow’s cloud-based technology is intended to help other businesses manage digital workflows. But the company hasn’t been shy in touting its own AI prowess.

Last month, ServiceNow launched Xanadu, a platform that uses a range of AI technologies including so-called “agents” to boost worker productivity. AI agents are digital assistants that are designed to help employees get tasks done with limited supervision.

In the second quarter of 2024, the company reported earnings per share of $3.13, excluding items, on $2.63 billion in revenue, beating analyst expectations.

ServiceNow isn’t the only tech giant betting big on the U.K. as a global destination for AI innovation. Earlier this year, Salesforce opened its first global AI center in London, a space it’s using to facilitate AI training and upskilling programs as well as promote industry collaboration.

The AI center forms part of a $4 billion investment Salesforce committed to making in the U.K. over five years in June last year.

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Cramer says Boeing is a buy here — plus, Wells Fargo and bank stocks keep rolling

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Cramer says Boeing is a buy here — plus, Wells Fargo and bank stocks keep rolling

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Google’s boomerang year: 20% of AI software engineers hired in 2025 were ex-employees

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Google's boomerang year: 20% of AI software engineers hired in 2025 were ex-employees

Sundar Pichai, chief executive officer of Alphabet Inc., during the Bloomberg Tech conference in San Francisco, California, US, on Wednesday, June 4, 2025.

David Paul Morris | Bloomberg | Getty Images

With the AI talent wars heating up between companies like OpenAI, Meta and Anthropic, one way Google has been competing is by aggressively rehiring former employees.

Some 20% of software engineers working on artificial intelligence that Google hired in 2025 were so-called boomerang employees, an increase from prior years, CNBC has learned. A Google spokesperson confirmed the statistic remains accurate as of December, and said the company saw a jump in the number of AI researchers coming from major competitors compared to 2024.

“We’re energized by our momentum, compute, and talent — engineers want to work here to keep building groundbreaking products,” the spokesperson said in a statement.

John Casey, Google’s head of compensation, recently told employees in a meeting about the rehiring. Casey said AI-focused software engineers are drawn to Google’s deep pockets and hefty computational infrastructure that’s needed to perform advanced AI work, according to audio reviewed by CNBC.

Google has a large pool of ex-employees to mine, particularly after its largest ever round of layoffs in early 2023, when parent company Alphabet cut 12,000 jobs, reducing headcount by 6%. That followed a market downturn driven by soaring inflation and rising interest rates. Google has since continued with rolling layoffs and buyouts.

Across the industry, employee boomerangs are up, according to data published earlier this year by ADP Research, with the sector it classifies as information showing the starkest numbers.

Google unveils 'Gemini 3 Flash' AI model focused on speed and cost

Google has been racing to catch up in generative AI after a slow start that followed OpenAI’s release of ChatGPT in late 2022. After fumbling a number of product rollouts, the company has bounced back this year, thanks to hefty investments in AI infrastructure and the success of its Gemini app. Google announced its latest model, Gemini 3, last month.

Alphabet’s stock price is up more than 60% this year, outperforming all of its megacap peers.

As a historical hotbed of engineering and innovation, Google has long been a place where competitors have turned to try and poach talent. That’s still the case.

Earlier this year, Microsoft hired around two dozen employees from Google’s DeepMind AI research lab, CNBC reported in July. OpenAI, meanwhile, has opened its wallets wide, along with Meta. OpenAI CEO Sam Altman told employees in June that Meta had been offering $100 million signing bonuses, and that he was aggressively trying to retain staffers.

Late last year, Google brought back a major figure in AI: Noam Shazeer.

Shazeer and Daniel De Freitas left Google in 2021 to start AI platform Character.AI, reportedly departing after Google rebuffed their attempts to try and get the company to push its internal chatbot forward.

Along with other members of the Character.AI research team, Shazeer and De Freitas rejoined DeepMind in August 2024 under a licensing deal for the startup’s technology.

Over the last year, Google has taken more risks, shipping products more quickly, even if they aren’t viewed as completely ready. Google has also made a companywide effort to remove bureaucracy, enacting widespread employee buyouts and eliminating more than one-third of its managers overseeing small teams, CNBC reported in August.

Google co-founder Sergey Brin, who came out of retirement in 2023, has at times personally reached out to prospective candidates to recruit them, according to people familiar with the matter who asked not to be named because they weren’t authorized to speak to the media. Meta CEO Mark Zuckerberg has also reportedly reached out to researchers on behalf of his company.

WATCH: OpenAI’s Sam Altman says Google is still a huge threat

OpenAI's Sam Altman: Google is still a huge threat

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Palo Alto Networks announces multibillion-dollar deal with Google Cloud

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Palo Alto Networks announces multibillion-dollar deal with Google Cloud

Dado Ruvic | Reuters

Palo Alto Networks will migrate key internal workloads to Google Cloud as part of a new multibillion-dollar agreement, the companies announced on Friday.

The companies said the deal is an expansion of their existing strategic partnership and will deepen their engineering collaboration.

Palo Alto Networks is now using Google’s Gemini artificial intelligence models to power its copilots, and it is also using Google Cloud’s Vertex AI platform, according to a release.

“Every board is asking how to harness AI’s power without exposing the business to new threats,” BJ Jenkins, president of Palo Alto Networks, said in a statement. “This partnership answers that question.”

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Palo Alto Networks, which offers a range of cybersecurity products, already has more than 75 joint integrations with Google Cloud and has completed $2 billion in sales through the Google Cloud Marketplace.

As part of the new phase of the partnership, Palo Alto Networks customers will be able to protect live AI workloads and data on Google Cloud, maintain security policies, accelerate Google Cloud adoption and simplify and unify their security solutions, the companies said.

Shares of Palo Alto Networks were up 1% on Friday. Google shares were mostly flat.

“This latest expansion of our partnership will ensure that our joint customers have access to the right solutions to secure their most critical AI infrastructure and develop new AI agents with security built in from the start,” Google Cloud President Matt Renner said in a statement.

WATCH: Google unveils ‘Gemini 3 Flash’ AI model focused on speed and cost

Google unveils 'Gemini 3 Flash' AI model focused on speed and cost

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