Google CEO warns: “No company will be immune if the AI bubble bursts” — markets on alert

Alphabet CEO Sundar Pichai has warned that no tech company — including Google — will be shielded if a potential AI investment bubble collapses. In an exclusive interview with BBC News, Pichai described the surge in AI enthusiasm as “extraordinary,” but accompanied by “elements of irrationality.”

His comments come as valuations of AI-focused companies skyrocket and fears grow that the industry may be overheating.

Alphabet’s market value has doubled in just seven months, reaching $3.5 trillion, while Nvidia recently became the first company in history to hit a $5 trillion valuation.

“No one is immune — not even us”

Asked directly whether Google would be protected in the event of an AI crash, Pichai replied:

“I think no company is going to be immune, including us.”

He compared the moment to the 1990s dot-com boom: overinvestment mixed with genuine technological revolution.

Concerns over $1.4 trillion tied to OpenAI

Analysts remain sceptical about a web of $1.4 trillion in commitments surrounding OpenAI — despite the company expecting revenues far below 1/1000 of that amount.

Energy demands, climate concerns, model accuracy and jobs

Pichai also addressed:

• rising energy demands of AI data centers

• slowing climate progress

• accuracy limitations of current AI models

• the impact of automation on jobs

Google’s strength: its “full stack” ecosystem

According to Pichai, Alphabet is comparatively better positioned because it controls its entire technological pipeline:

• its own custom chips

• its own AI models

• vast proprietary datasets

• massive global infrastructure

However, even with these advantages, the Google chief warns that a burst AI bubble would ripple through the entire global economy.