Pichai warns of broad risk
Sundar Pichai says no company will avoid the impact if the AI bubble bursts. He told a major British news outlet that AI investment creates an “extraordinary moment” but also shows “irrationality”. He noted rising fears in Silicon Valley as company valuations soar and firms spend heavily on fast-growing AI technology. Pichai said his company could handle a downturn but still faces risk. “I think no company is going to be immune, including us,” he said.
Exclusive interview at Google headquarters
Pichai spoke at Google’s California base about energy needs, slowing climate targets, investment in the UK, model accuracy and the future of work. The interview comes as scrutiny of the AI market reaches new intensity. Alphabet’s value doubled in seven months to $3.5tn as markets gained confidence in its ability to counter the rise of OpenAI. Analysts now focus on Alphabet’s push to build specialised AI superchips that compete with Nvidia, which recently reached a historic $5tn valuation.
Some analysts question the complex $1.4tn network of deals around OpenAI, whose revenues remain tiny compared with the planned investments. Pichai said investment cycles often “overshoot”, echoing warnings from the 1990s about market exuberance. He compared today’s boom to the early internet, which saw excessive investment but still reshaped the world.
Warnings from global business leaders
Recent comments from JP Morgan chief Jamie Dimon highlight similar concerns. He said AI investment will pay off but insisted some money will “probably be lost”. Pichai argued that Google’s control of its full technology stack — from chips to models to video platforms — gives it an advantage during market turbulence.
Major UK investment plans
Alphabet announced a £5bn UK investment for infrastructure and research over the next two years. Pichai said the firm will expand high-level research in the UK, especially at DeepMind in London. He confirmed that Google will train models in the UK “over time”, a step long encouraged by government officials who aim to position the UK as the third major AI power after the US and China. “We are committed to investing in the UK in a pretty significant way,” he said.
Concerns about massive energy demand
Pichai warned about the “immense” energy needs of AI. Global AI activity used 1.5% of the world’s electricity last year. He said countries, including the UK, must expand energy infrastructure and develop new sources. “You don’t want to constrain an economy based on energy, and that will have consequences,” he said.
He also admitted that AI’s heavy energy use slows Alphabet’s climate progress, but the firm still targets net zero by 2030 with new energy technologies. “The rate at which we were hoping to make progress will be impacted,” he said.
AI will reshape the future of work
Pichai called AI “the most profound technology” ever developed. He said society must navigate disruptions but will also gain new opportunities. He expects jobs to change and said people must adapt to succeed. Anyone who learns to use AI tools, whether teacher or doctor, will do better. “Those who adapt will thrive,” he said.
