Alphabet chief executive Sundar Pichai has cautioned that no technology firm — including Google — will escape unscathed if the surging artificial intelligence boom tips into a market correction, amid growing concerns that soaring valuations resemble the excesses of the dotcom era.
Speaking to the BBC, Pichai described today’s AI investment rush as an “extraordinary moment”, but one showing clear signs of “irrationality”. The warning comes as global markets debate whether sky-high AI valuations, driven by an arms race for chips, data centres and talent, can be sustained.
Alphabet’s share price has jumped about 46 percent this year as investors bet on its ability to keep pace with OpenAI, maker of ChatGPT. But Pichai noted that if the market turns, “no company is going to be immune, including us”.
His comments echo jitters in the United States, where concerns over an AI-driven bubble have weighed on broader indices. British policymakers have also flagged similar risks.
Pichai also raised alarms about AI’s exploding energy needs. The International Energy Agency estimates that AI accounted for around 1.5 percent of global electricity consumption last year. By 2030, AI-related computing demand could hit 200 gigawatts — roughly Brazil’s annual electricity use — with the US accounting for half of that load.
Pichai said AI would bring significant workplace disruption, potentially even displacing CEOs, though he argued that workers who adapt to the tools would “do better” in every profession — “whether you want to be a teacher or a doctor”.
Alphabet recently crossed $100 billion in quarterly revenue for the first time, crediting strong uptake of AI-enhanced products across Google Search and its Gemini model suite.
