Google CEO Sundar Pichai has cautioned that the ongoing surge in artificial intelligence (AI) investment carries elements of “irrationality,” warning that even Google would not be immune if the AI bubble bursts.
AI Boom Has Parallels With Early Internet Era
In an interview with the BBC at Google’s California headquarters, Pichai compared the present AI frenzy to the early days of the internet.
“There was clearly a lot of excess investment, but none of us would question whether the internet was profound… I expect AI to be the same,” he said.
Pichai described the moment as “extraordinary,” adding that both rational investment and irrational hype coexist in transformative technological phases.
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‘No Company Is Immune’
When asked whether Google could withstand an AI downturn, Pichai responded:
“I think no company is going to be immune, including us.”
Alphabet’s valuation has doubled in seven months to $3.5 trillion, driven by aggressive AI sector gains.
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Other Tech Leaders Share Bubble Concerns
Several technology leaders have echoed Pichai’s concerns:
- Sam Altman, CEO of OpenAI, recently said “many parts of AI are bubbly right now.”
- Jeff Bezos described the phenomenon as an “industrial bubble,” noting that unlike financial bubbles, such surges can spur long-term innovation.
Bezos added that industrial bubbles “can be good” for society because they accelerate invention and technological breakthroughs.