Pichai says no organisation can avoid the shock
Sundar Pichai warns that every organisation will feel the pressure if the AI bubble bursts. He told a major British news outlet that today’s AI investment wave marks an “extraordinary moment” but also shows clear signs of “irrationality”. He highlighted growing anxiety in Silicon Valley as valuations surge and companies invest heavily in fast-expanding AI technology. Pichai said his firm can handle a downturn but still faces exposure. “I think no company is going to be immune, including us,” he said.
Insight from Google’s California headquarters
Pichai discussed energy demand, delays in climate goals, UK expansion, model accuracy and the changing nature of work. The interview comes during one of the most intense periods of AI market scrutiny. Alphabet’s market value doubled in seven months to $3.5tn as investors grew more confident in its ability to challenge OpenAI. Analysts are watching Alphabet’s push to build specialised AI superchips that compete with Nvidia, which recently reached a record $5tn valuation.
Several analysts question the complex $1.4tn network of deals linked to OpenAI, whose revenues remain tiny compared with planned investments. Pichai said investment cycles often “overshoot”, echoing warnings made during the dot-com boom. He compared the AI surge to the early internet, which saw excess spending but still transformed the world.
Global business leaders raise similar concerns
JP Morgan chief Jamie Dimon recently warned that AI spending will pay off but said some capital will “probably be lost”. Pichai argued that Google’s full control of its technology stack — from chips to models to video platforms — gives it major strength in turbulent markets.
Alphabet increases commitment to the UK
Alphabet pledged £5bn for UK 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 AI models in the UK “over time”, a move encouraged by government leaders who want the country to become the world’s third major AI power after the US and China. “We are committed to investing in the UK in a pretty significant way,” he said.
Rising energy needs threaten climate progress
Pichai warned about the “immense” electricity demand created by AI. Global AI activity consumed 1.5% of the world’s power last year. He said countries, including the UK, must expand energy supply and upgrade infrastructure. “You don’t want to constrain an economy based on energy, and that will have consequences,” he said.
He admitted that AI’s heavy energy use slows Alphabet’s climate plans, but the firm still aims for net zero by 2030 through new energy technology. “The rate at which we were hoping to make progress will be impacted,” he said.
AI set to reshape skills and employment
Pichai called AI “the most profound technology” ever created. He said society must deal with disruption but will also gain new opportunities. He expects many roles to shift and said workers must adapt to succeed. Anyone who learns to use AI tools, whether teacher or doctor, will gain a clear edge. “Those who adapt will thrive,” he said.
