Google CEO Sundar Pichai has warned that no company, including Google, will escape the effects of a potential AI market crash. While AI presents transformative opportunities, he said some investment trends have become “irrational,” raising concerns about sustainability.
Alphabet’s value has soared to $3.5 trillion, driven by confidence in its AI capabilities and specialized chips designed to rival competitors. However, analysts caution that the scale of investments, particularly around companies like OpenAI, far exceeds current revenue streams, increasing the risk of market turbulence.
Pichai likened the current AI frenzy to past technology booms, noting that heavy investment cycles often “overshoot.” He stressed that such excess does not undermine the long-term significance of the technology. “AI will be transformative, but moments like this can include both rational growth and speculative hype,” he said.
Expanding AI Operations in the UK
Alphabet plans to invest £5 billion in AI research and infrastructure across the UK over the next two years. Google intends to train AI models locally and expand its DeepMind unit in London. Pichai believes this will strengthen the UK’s position as a leading AI hub, alongside the US and China.
Energy Challenges and Climate Goals
Pichai also raised concerns about the rising energy demands of AI, which consumed roughly 1.5% of global electricity last year. He stressed that new energy infrastructure is critical to support AI growth without stalling economic productivity. While energy needs have slowed progress toward Google’s net-zero goal, the company remains committed to achieving it by 2030 through clean energy investment.
AI Will Reshape Work and Skills
Describing AI as “the most profound technology” developed by humanity, Pichai said it will change the nature of work across industries. Roles may evolve, and new opportunities will arise. He urged professionals to adopt AI tools and adapt their skills, emphasizing that those who embrace the technology will excel.
Conclusion
While AI promises enormous potential, Pichai cautioned that the sector remains vulnerable to an AI market crash. Companies must prepare for volatility while continuing to invest in innovation, sustainable growth, and workforce readiness.
