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Alphabet CEO Sundar Pichai says no company, including Google, would be immune if the artificial intelligence market were to suffer a valuation correction.<\/p>\n
In an exclusive interview with BBC News at Google\u2019s California headquarters, Pichai said the rapid surge in AI investment is \u201can extraordinary moment,\u201d but he acknowledged \u201cirrationality\u201d in parts of the market.<\/p>\n
Asked whether Alphabet would be protected if an AI bubble burst, Pichai said, \u201cI think no company is going to be immune, including us.\u201d He added that while Google could weather volatility, the industry faces a period of heavy speculation.<\/p>\n
His comments come as valuations for major AI companies have risen sharply and capital spending on the technology sector reaches historic highs. Alphabet\u2019s market value has doubled in seven months to $3.5 trillion as investors gain confidence in its AI strategy and its ability to compete with OpenAI.<\/p>\n
Alphabet is building specialized AI chips that compete with Nvidia, which recently became the world\u2019s first $5 trillion company. Analysts have expressed concern about a complex network of $1.4 trillion in deals surrounding OpenAI, whose expected revenue this year is far below the scale of recent investment.<\/p>\n
Those concerns have sparked comparisons to the dotcom bubble of the late 1990s, when early internet firms surged in value before collapsing in 2000. The downturn caused company failures, job losses and declines in retirement savings.<\/p>\n
Pichai said technology cycles often \u201covershoot\u201d before stabilizing.<\/p>\n
\u201cWe can look back at the internet right now. There was clearly a lot of excess investment, but none of us would question whether the internet was profound,\u201d he said. \u201cI expect AI to be the same. So I think it\u2019s both rational and there are elements of irrationality through a moment like this.\u201d<\/p>\n
JP Morgan CEO Jamie Dimon earlier told the BBC that while AI investment will deliver returns, some capital is \u201cprobably going to be lost.\u201d<\/p>\n
Pichai said Alphabet has advantages because its operations span \u201cthe full stack,\u201d including hardware, large-scale data, foundational models, and scientific research. He said this positioning could help Google withstand market turbulence.<\/p>\n
Alphabet is also expanding in the United Kingdom. In September, the company announced a \u00a35 billion investment in AI infrastructure and research over two years. Pichai said Alphabet plans to conduct advanced model training in the UK, a move supported by British officials who want the country to become the world\u2019s third major AI hub after the United States and China.<\/p>\n
\u201cWe are committed to investing in the UK in a pretty significant way,\u201d he said.<\/p>\n
However, he warned that AI\u2019s energy demands are substantial. AI accounted for an estimated 1.5 percent of global electricity consumption last year, according to the International Energy Agency.<\/p>\n
Pichai said economies must scale energy supply and infrastructure or face growth constraints. Alphabet is still targeting net-zero emissions by 2030, although he admitted progress may slow as AI workloads expand.<\/p>\n
\u201cThe rate at which we were hoping to make progress will be impacted,\u201d he said.<\/p>\n
Pichai said AI will also reshape employment, calling it \u201cthe most profound technology\u201d humanity has worked on. While he expects job transitions and disruptions, he said workers who learn to use AI tools will benefit.<\/p>\n
\u201cIt doesn\u2019t matter whether you want to be a teacher or a doctor. All those professions will be around, but the people who will do well in each of those professions are people who learn how to use these tools,\u201d he said.<\/p>\n<\/div>\n
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