Google Chief Warns No Company is Safe if AI Bubble Bursts
Google’s parent company, Alphabet, may be one of the world’s most powerful tech giants, but even it would feel the shockwaves if the booming artificial intelligence sector were to suffer a major downturn, CEO Sundar Pichai has warned.
In an exclusive interview with the BBC at Google’s California headquarters, Pichai described the current rush of investment into AI as an “extraordinary moment” but acknowledged signs of “irrationality” reminiscent of previous tech bubbles. While he expressed confidence in Google’s ability to navigate a potential correction, he cautioned that “no company is going to be immune, including us.”
The warning comes at a time when scrutiny of the AI market is at its highest point yet. Alphabet’s market value has surged to $3.5 trillion in just seven months, buoyed by investor confidence that the company can hold its ground against rivals such as OpenAI. Much of the momentum is driven by Alphabet’s push into AI superchips, placing it in direct competition with Nvidia, which recently became the first company to hit a $5 trillion valuation.
But amid the rapid rise, analysts are questioning whether the pace is sustainable. Concerns have grown over a tangle of investment deals linked to OpenAI—valued in the trillions despite expected annual revenues that amount to only a fraction of that figure. Pichai echoed sentiments similar to those of former US Federal Reserve chair Alan Greenspan during the dotcom era, noting that technology cycles often see investment “overshoot.”
He drew parallels to the early days of 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.”
Pichai’s remarks follow similar cautions from JP Morgan CEO Jamie Dimon, who recently predicted that while AI spending will yield long-term gains, some investments will “probably be lost” along the way.
Expanding UK Presence, Rising Energy Demands
Alphabet has been strengthening its footprint in the UK, announcing a £5 billion investment into AI infrastructure and research over the next two years. Pichai confirmed that the company plans to expand its work at DeepMind in London and will “over time” begin training AI models in the UK – an ambition the UK government sees as critical to becoming the world’s third major AI power after the US and China.
However, he also highlighted a challenge overshadowing rapid AI development: energy consumption. AI systems accounted for 1.5% of global electricity usage last year, according to the International Energy Agency. Pichai called the energy demand “immense” and urged countries, including the UK, to accelerate efforts to generate new forms of power and expand energy infrastructure.
The strain on energy resources has slowed progress on Google’s climate goals, he admitted, though the company remains committed to achieving net zero emissions by 2030 through investment in emerging clean technologies.
Jobs Will Change – But Not Disappear
Pichai described AI as “the most profound technology” humanity has ever worked on and acknowledged it will transform the workplace as deeply as past industrial shifts. While he expects AI to disrupt society, he said it will also unlock “new opportunities,” requiring workers across professions to adapt.
“It doesn’t matter whether you want to be a teacher or a doctor,” he said. “Those professions will still exist – but the people who will do well are the ones who learn how to use these tools.”
Despite his warning about volatility, Pichai emphasised that AI’s long-term impact remains overwhelmingly positive. But with valuations skyrocketing and global investment accelerating, his message to the industry was clear: the boom won’t last forever – and no player, not even Google, is invincible.
