Pichai issues broad warning to the tech world
Sundar Pichai says no company will escape the fallout if the AI surge collapses. He told a major British news outlet that the rapid rise of AI investment creates an “extraordinary moment” but also shows signs of “irrationality”. He highlighted growing unease in Silicon Valley as valuations soar and companies spend heavily on fast-expanding AI tools. Pichai said his firm can absorb a downturn but still faces exposure. “I think no company is going to be immune, including us,” he said.
Detailed interview at Google’s California headquarters
Pichai discussed soaring energy needs, climate delays, UK investment, model accuracy and the effect of AI on jobs. The interview comes during the most intense scrutiny the AI market has faced. Alphabet’s value doubled in seven months to $3.5tn as investors grew more confident in its ability to counter OpenAI. Analysts now focus on Alphabet’s bid to develop specialised AI superchips that compete with Nvidia, which recently reached a historic $5tn valuation.
Several analysts question the complex $1.4tn web of deals around OpenAI, whose revenues remain tiny compared with planned investment levels. Pichai said investment cycles often “overshoot”, echoing warnings made during the dot-com era about market exuberance. He compared the current situation to the early internet, which saw excessive spending but still reshaped modern life.
Top executives echo similar concerns
JP Morgan chief Jamie Dimon recently delivered a similar message. He said AI spending will pay off but warned that part of the capital will “probably be lost”. Pichai argued that Google’s full control of its technology stack — from chips to models to video platforms — gives it strong stability in any market shock.
Alphabet boosts its role in the UK
Alphabet recently pledged £5bn for UK infrastructure and research over the next two years. Pichai said the firm will expand high-level research in the UK, especially at DeepMind in London. He confirmed that Google will train AI models in the UK “over time”, a step backed by government leaders who want the country to become the third major AI power after the US and China. “We are committed to investing in the UK in a pretty significant way,” he said.
Rising energy demand threatens climate progress
Pichai warned about the “immense” electricity needs of AI. Global AI activity used 1.5% of the world’s power last year. He said countries, including the UK, must expand their energy supply and upgrade infrastructure. “You don’t want to constrain an economy based on energy, and that will have consequences,” he said.
He admitted that AI’s heavy energy use delays Alphabet’s climate goals, but the firm still aims for net zero by 2030 through major investment in new energy technology. “The rate at which we were hoping to make progress will be impacted,” he said.
AI will transform global work and skills
Pichai called AI “the most profound technology” ever developed. He said society must navigate disruption but will also gain new opportunities. He expects many roles to evolve and said workers must adapt to thrive. Anyone who learns to use AI tools, whether teacher or doctor, will gain a clear advantage. “Those who adapt will thrive,” he said.
