In an exclusive interview with the BBC, Google’s parent company Alphabet Inc. CEO Sundar Pichai delivered a blunt warning: if the current artificial-intelligence (AI) investment boom turns into a bubble, no company is immune including his own. (Free Press Journal)
Pichai described the surge in AI spending as an “extraordinary moment”, yet also acknowledged strong signs of “irrationality” creeping into the fast-moving sector. (Free Press Journal)
The remarks come against a backdrop of skyrocketing valuations for AI companies: Alphabet’s market cap has doubled in recent months to roughly US$3.5 trillion, as markets bet on its dominance over rivals like OpenAI and NVIDIA Corporation. Analysts caution, however, that much of the investment (in the order of US$1.4 trillion in deals) is outpacing near-term revenue potential. (Free Press Journal)
Reflecting on earlier tech cycles, Pichai drew a parallel with the dot-com era, citing former Federal Reserve chairman Alan Greenspan’s 1996 “irrational exuberance” warning. “We can look back at the internet there was clearly a lot of excess investment, but none of us would question whether the internet was profound. I expect AI to be the same,” he said. (Free Press Journal)
While Pichai believes Alphabet is in a better position than many thanks to its full-stack model spanning chips, data (YouTube), AI models and infrastructure he stressed that no firm will be entirely insulated from market turbulence.
“I think no company is going to be immune, including us,” he stated. (Free Press Journal)
Beyond financial risk, he addressed other headwinds:
- Energy demands: AI’s growth comes with immense energy consumption (estimated at 1.5% of global electricity last year), and this requires urgent upgrades to infrastructure, including in the United Kingdom. (Free Press Journal)
- Climate targets: Alphabet’s net-zero ambitions by 2030 have been impacted by the accelerated demands of its AI operations, Pichai acknowledged. (Free Press Journal)
- Jobs and society: Pichai called AI “the most profound technology” humanity has worked on, warning of societal disruptions but also highlighting new opportunities. “It doesn’t matter whether you want to be a teacher or a doctor… the people who will do well … are people who learn how to use these tools.” (Free Press Journal)
- Global footprint: The company is ramping up investments in the UK, committing £5 billion to infrastructure and AI research including training of models locally, which UK ministers see as key to its super-power status. (Free Press Journal)
In short, Pichai’s message is clear: while AI holds transformative potential and long-term promise, the current investment cycle may be overheating and the ripple effects of a correction would extend across the tech landscape. For companies, stakeholders and policymakers alike, the warning is one to watch carefully.