Sundar Pichai warns: no company is immune if AI bubble bursts

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Alphabet and Google CEO Sundar Pichai has warned that if the current artificial intelligence (AI) investment wave proves to be a bubble, no company—including Google—would be immune to its effects.

Speaking to BBC News at Google’s California headquarters, Pichai described the AI moment as “extraordinary” but acknowledged signs of irrational exuberance, echoing the pre-dotcom era hype. “There’s a lot of investment and clearly some irrationality,” he said, noting that the industry risks “overshooting” in such cycles. “I think no company is going to be immune, including us.”

His remarks come as Alphabet’s valuation doubles to $3.5 trillion in just seven months, buoyed by confidence in its Gemini-powered AI tools and growing competition with OpenAI. The rise mirrors past bubbles, with AI investments and valuations now outpacing revenues—raising comparisons with the dotcom bust.

Pichai also addressed the energy cost of AI, citing data that it consumed 1.5% of global electricity in 2023. He admitted Alphabet’s climate goals may be delayed but reiterated the company’s 2030 net zero target.

In the UK, Alphabet plans to invest £5 billion over two years, expanding its DeepMind research unit and pledging to train AI models locally—a move governments hope will boost national AI leadership.

On jobs, Pichai reiterated that AI is a disruptive but enabling force. “It will evolve and transition certain jobs,” he said, but those who adapt “will do better”—including in fields like teaching and medicine.