Every business would feel the impact if an artificial intelligence bubble were to burst, Alphabet chief Sundar Pichai has told the BBC.
He called the current surge in AI investment an «extraordinary moment» but warned of growing «irrationality» as valuations climb and spending accelerates. Asked whether Google would withstand a collapse, he said the company could manage volatility yet «no firm is immune, including us».
Alphabet’s value has doubled in seven months to $3.5 trln as it races against OpenAI and develops advanced AI chips to challenge Nvidia, now worth $5 trln. Analysts have questioned whether the $1.4 trln surrounding OpenAI is sustainable given its comparatively small revenue, drawing parallels to the dotcom bubble.
Mr Pichai said investment cycles often «overshoot» but the underlying technology remains transformative. His comments echo recent caution from JP Morgan chief Jamie Dimon.
Energy Strain and UK Investment
He highlighted the «immense» energy demands of AI, which used about 1.5% of global electricity last year, and said countries including the UK must expand power generation to support future growth.
Alphabet has pledged £5 bn to UK AI infrastructure, including plans to train some models in the country for the first time.
Mr Pichai said AI will reshape jobs. Workers who learn to use the technology «will do better», though some roles will change. He said Alphabet remains committed to reaching net zero by 2030 but admitted AI’s energy needs have slowed progress.
