Alphabet CEO Sundar Pichai warned that no company would escape the impact if the current artificial intelligence boom were to collapse. His comments come as AI valuations reach extreme levels and investment continues to surge, raising widespread concerns about a possible bubble.
In an interview with the BBC on Tuesday, Pichai described today’s AI momentum as an “extraordinary moment.” However, he admitted that parts of the market show “elements of irrationality,” echoing the dot-com era’s warnings about “irrational exuberance.”
Analysts have been debating for months whether AI valuations can stay at these elevated levels. When asked how Google would handle a potential downturn, Pichai said the company could endure it but stressed that “no company is going to be immune, including us.”
Alphabet’s shares have climbed roughly 46% this year, driven by investor confidence in its ability to compete with OpenAI, the maker of ChatGPT.
Concerns about overstretched AI valuations are now influencing broader U.S. markets. British policymakers have also highlighted the risk of an emerging bubble.
In September, Alphabet committed £5 billion over two years to expand AI infrastructure and research in the UK. This investment includes a new data centre and additional support for DeepMind, its London-based AI lab.
Pichai also revealed that Google will begin training AI models in Britain. The UK government, led by Prime Minister Keir Starmer, hopes this will strengthen the country’s goal of becoming the world’s third major AI “superpower,” behind the United States and China.
He further cautioned about the “immense” energy demands of AI. As a result, Alphabet expects delays in meeting its net-zero goals while it expands its computing capacity.
