Pichai says no firm will escape the impact
Sundar Pichai says every company will feel the shock if the AI boom collapses. He told a major British news outlet that the surge in AI investment marks an “extraordinary moment” but also shows “irrationality”. He pointed to rising concern in Silicon Valley as valuations jump and firms pour money into fast-growing AI ventures. Pichai said his company can handle a downturn but still faces risk. “I think no company is going to be immune, including us,” he said.
Exclusive insights from Google’s California base
Pichai discussed energy demand, slowing climate goals, UK expansion, model reliability and the future of work. The interview comes as scrutiny of the AI market reaches new levels. Alphabet’s market value doubled in seven months to $3.5tn as investors gained confidence in its ability to compete with OpenAI. Analysts now track Alphabet’s push to build specialised AI superchips that challenge Nvidia, which recently hit a landmark $5tn valuation.
Some analysts question the complex $1.4tn deal structure around OpenAI, whose revenues remain tiny compared with the scale of investment. Pichai said investment cycles often “overshoot”, echoing warnings from the 1990s about exuberant markets. He compared today’s AI boom to the early internet, which saw excess spending but still transformed the world.
Warnings from top business figures
JP Morgan chief Jamie Dimon issued similar caution. He said AI investment will deliver returns but warned that some capital will “probably be lost”. Pichai argued that Google’s full control of its technology stack — from chips to models to video platforms — strengthens its position in any market shock.
Alphabet expands UK footprint
Alphabet recently committed £5bn to UK infrastructure and research over the next two years. Pichai said the company will grow 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 step encouraged by government leaders who want the country to become the third major AI force after the US and China. “We are committed to investing in the UK in a pretty significant way,” he said.
Huge energy needs force tough decisions
Pichai warned that AI demands “immense” amounts of electricity. Global AI activity used 1.5% of the world’s power 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 admitted that rising energy use slows Alphabet’s climate progress, but the firm still aims for net zero by 2030 through new energy technologies. “The rate at which we were hoping to make progress will be impacted,” he said.
AI prepares to reshape global workforces
Pichai called AI “the most profound technology” ever created. He said society must handle disruptions but will also gain new opportunities. He expects roles to evolve and said workers must adapt to succeed. Anyone who learns to use AI tools, whether teacher or doctor, will gain an edge. “Those who adapt will thrive,” he said.
