Homegrown technology firm Zoho Corporation Founder Sridhar Vembu on Tuesday said employees will not receive their annual pay hikes, citing  surging artificial intelligence (AI) infrastructure costs and geopolitical uncertainties. He added that the business outlook for the software sector is uncertain.

According to Vembu the server prices for data centres have registered a four-fold increase and the AI costs have also increased, which the company is trying to contain.