by The rapid acceleration of artificial intelligence has turned 2025 into one of the most transformative — and uncertain — years in modern technology. Investments are soaring, valuations are exploding, and nearly every major tech company is betting big on AI. But according to Sundar Pichai, the CEO of Alphabet and Google, the world should be cautious: if an AI bubble bursts, no company will escape the impact.
Speaking in an exclusive interview with BBC News at Google’s headquarters in California, Pichai described AI’s growth as an “extraordinary moment,” but warned that a wave of “irrationality” is also sweeping through the industry. His comments come as fear grows across Silicon Valley and global financial markets that AI investments may be overheating in a way that echoes the dot-com bubble of the late 1990s.
No One Is Immune — Not Even Google
When asked whether Google could withstand a sudden crash in the AI market, Pichai gave a surprising and refreshingly candid answer.
“No company is going to be immune, including us,” he said.
This statement stands out because Alphabet, Google’s parent company, has experienced massive growth in recent months. Its valuation has doubled in seven months, reaching $3.5 trillion, as investors pour money into the AI sector and place confidence in Google’s ability to compete with OpenAI, Nvidia, and other rivals.
Despite these gains, Pichai believes the industry is experiencing a mix of rational long-term investment and short-term hype. He compared the current moment to the early days of the internet: an era with undeniable long-term value, yet filled with excessive speculation.
“Like the early internet, there is clearly a lot of excess investment,” he said. “But none of us today would argue the internet wasn’t profound.”
He expects AI to follow a similar path — transformative, but turbulent.
Fears of an AI Bubble
The technology sector is buzzing with concerns about whether AI valuations can hold. Major chipmakers like Nvidia — now worth an unprecedented $5 trillion — have become the center of global stock markets. Startups with little revenue are securing enormous funding rounds. Analysts have even questioned the complex $1.4 trillion worth of financial arrangements surrounding OpenAI despite its relatively modest annual revenues.
This raises a fundamental question: Are we heading toward another market correction?
Some leaders, like JP Morgan CEO Jamie Dimon, recently told the BBC that AI will deliver massive long-term value, but admitted that some of the money currently flooding into the industry “will probably be lost.”
Pichai’s comments reinforce this. The risk is real. But unlike many firms participating in the AI race, Alphabet believes it has built a uniquely resilient “full-stack” ecosystem — everything from custom chips to massive datasets, research labs, and global cloud infrastructure.
Competing in the Age of Superchips
A key part of Alphabet’s strategy is its investment in specialized AI chips. As AI models grow more complex, the need for advanced hardware has skyrocketed. Google has been developing custom superchips to compete directly with Nvidia, whose GPUs dominate the AI training market.
Alphabet’s ability to produce its own chips — combined with its control of YouTube’s vast data library and DeepMind’s research — gives it advantages many AI startups lack. Yet the competition is fierce and getting more expensive. Investors are carefully watching who will emerge as the long-term winners in the AI hardware race.
Strengthening the UK’s AI Position
One of the most significant announcements Pichai made in the interview involves Alphabet’s expansion in the United Kingdom. In late 2025, the company committed £5 billion toward AI research and infrastructure in the UK over the next two years.
DeepMind, Google’s world-renowned AI division, is already based in London. Pichai revealed that Alphabet plans to take a major step: training some of its most advanced AI models within the UK — something the government has been lobbying for.
This could position the UK as what ministers call the world’s “third AI superpower,” following the U.S. and China.
“We are committed to investing in the UK in a pretty significant way,” Pichai said.
The move could accelerate the growth of the UK’s tech ecosystem and solidify London’s role as a global AI research hub.
The Growing Energy Crisis Behind AI
Beyond valuations and investments, Pichai pointed to a deeper challenge: energy. According to the International Energy Agency, AI accounted for 1.5% of global electricity consumption last year — a figure expected to grow quickly.
As AI models grow larger, so do the data centers required to train and run them. Pichai stressed the need for countries, including the UK, to expand and modernize their energy infrastructure.
“You don’t want to constrain an economy because of energy,” he said. “That will have consequences.”
This growing demand also affects Google’s climate goals. The company previously aimed for net-zero emissions by 2030, but Pichai admitted that AI’s rising energy requirements have slowed progress.
“The rate at which we hoped to make progress will be impacted,” he said. However, he reiterated Google’s commitment to that target, citing major investments in renewable energy and new technologies.
AI’s Impact on Jobs: Disruption and Opportunity
No topic in AI generates more debate than the future of work. Pichai called AI “the most profound technology humanity has worked on,” and emphasized that its impact on jobs will be significant.
“We will have to work through societal disruptions,” he said, acknowledging that certain types of work will change or shift.
However, he also believes AI will create new opportunities and reward those who adapt.
“All professions will still exist,” he explained. “Teachers, doctors — these roles will remain. But the people who excel in those roles will be the ones who learn how to use AI tools effectively.”
In Pichai’s view, AI will amplify human abilities rather than replace them entirely. The challenge will be ensuring people acquire the skills to work alongside intelligent systems.
Balancing Innovation With Stability
Pichai’s interview arrives at a moment when the AI world is under immense scrutiny. Investors, regulators, governments, and consumers are all asking similar questions:
-
How stable is the AI market?
-
Can the current pace of investment continue?
-
Is a financial correction inevitable?
-
Are tech companies prepared?
While Pichai believes Google has a strong foundation, his broader message is clear: no company is fully insulated from a potential AI market downturn. Even the world’s largest tech firms must navigate uncertainty.
His remarks echo the spirit of Alan Greenspan’s famous “irrational exuberance” warning before the dot-com crash. History suggests that groundbreaking technologies tend to attract speculation, overspending, and corrections before reaching maturity.
But Pichai remains optimistic. Like the internet, he believes AI’s long-term impact will be transformative — even if the journey includes turbulence.
