Sundar Pichai, CEO of Alphabet, warns that no company will be immune to the potential collapse of the AI boom, citing both excitement and irrationality in the current market.
Sundar Pichai, the CEO of Google-parent Alphabet, has stated that no company will remain unscathed if the current boom in artificial intelligence (AI) firms collapses. His comments come amid rising valuations and significant investments that have sparked concerns of a potential bubble in the market.
In an interview with the BBC, Pichai described the ongoing wave of AI investment as an “extraordinary moment.” However, he also pointed out the presence of “elements of irrationality” in the market, drawing parallels to the warnings of “irrational exuberance” that characterized the dotcom era.
“We 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,” Pichai noted. “I expect AI to be the same. So I think it’s both rational and there are elements of irrationality through a moment like this.”
Pichai emphasized that no company, including Google, would be immune to the risks associated with the AI market. Nevertheless, he expressed confidence in Alphabet’s unique position, citing the company’s ownership of a comprehensive “full stack” of technologies—from chips to YouTube data, models, and frontier science. This, he believes, will help the company navigate any potential turbulence in the AI sector.
During the interview, which took place at Google’s headquarters in California, Pichai also discussed Alphabet’s plans for AI development in the UK. He mentioned that the company will invest in “state of the art” research, particularly at its key AI unit, DeepMind, located in London. In September, Alphabet committed £5 billion (approximately $6.58 billion) over two years to enhance UK AI infrastructure and research, which includes establishing a new data center and further investment in DeepMind.
Pichai addressed various topics during the interview, including energy requirements, the slowing of climate targets, and the accuracy of AI models. He noted that Google plans to begin training AI models in Britain, a move that UK Prime Minister Keir Starmer hopes will help position the country as the world’s third AI “superpower,” following the United States and China.
He also warned about the “immense” energy demands associated with AI development, acknowledging that Alphabet’s net-zero targets would be delayed as the company scales up its computing power. While he recognized that the energy needs of its expanding AI operations would impact the pace of progress toward climate goals, he reiterated Alphabet’s commitment to achieving net zero by 2030 through investments in new energy technologies. “The rate at which we were hoping to make progress will be impacted,” he said.
Pichai characterized AI as “the most profound technology” humanity has worked on, stating that society will need to navigate the disruptions it brings while also recognizing the new opportunities it creates.
As discussions around the sustainability of AI valuations continue, broader markets in the U.S. have already felt the effects of inflated AI valuations. British policymakers have also raised concerns about the risks of a bubble in the AI sector.
Other executives have echoed Pichai’s concerns regarding the AI bubble. Jarek Kutylowski, CEO of German AI firm DeepL, and Hovhannes Avoyan, CEO of Picsart, recently expressed similar apprehensions in an interview with CNBC.
Source: Original article