The head of Google’s parent company, Alphabet, Sundar Pichai, has cautioned that the rapid growth of artificial intelligence (AI) investments may carry some “irrationality,” raising concerns of a potential market bubble.
In an exclusive interview with BBC News, Pichai described the AI boom as an “extraordinary moment” but acknowledged that the surge in valuations and spending on AI technology could pose risks.
“I think no company is going to be immune, including us,” he said, addressing fears of a potential bubble burst.
The comments come as AI companies have seen their values soar in recent months, with Alphabet shares doubling in seven months to reach $3.5 trillion, driven by market confidence in Google’s ability to compete with OpenAI and its ChatGPT platform.
Pichai emphasized that Google’s unique approach—controlling its full stack of technologies, from chips and data to AI models—positions the company to better weather any turbulence in the AI market.
The CEO also discussed broader topics at Google’s California headquarters, including energy demands, slowing climate targets, investment in the UK, the accuracy of AI models, and the technology’s impact on jobs.
Pichai’s warning follows similar concerns from industry leaders, including JP Morgan CEO Jamie Dimon, who said last month that while AI investments may yield returns, some of the money being poured into the sector could “probably be lost.”
