Google boss Sundar Pichai says ‘no company is going to be immune’ if the AI bubble bursts
Alphabet CEO Sundar Pichai warns that no company - including Google - would escape the fallout if the AI bubble bursts, even as he stresses the need for cautious investment, reliable information ecosystems, and major energy expansion to support the technology’s rapid growth.
Alphabet CEO Sundar Pichai has warned that “no company is going to be immune” if the booming AI market suddenly cools, arguing that even Google would feel the impact.
Speaking to the BBC, Pichai said the current wave of investment is both “rational” and “irrational,” echoing the “irrational exuberance” warnings that preceded the dot-com crash.
Pichai acknowledged that AI is driving extraordinary growth - Alphabet’s valuation has doubled in seven months to $3.5 trillion, and demand for Google’s home-grown AI superchips is surging - but cautioned that “the industry can overshoot”.
Still, he insisted Google is better positioned than most thanks to its control of a “full stack” that includes data, hardware, models, and global infrastructure.
The CEO also addressed rising scrutiny around the reliability of AI systems, stressing that users “should not blindly trust” chatbots or AI-generated summaries.
AI, he said, remains “prone to errors,” reinforcing the need for a broad “information ecosystem” rather than replacing traditional search or expert sources.
Google has faced backlash over inaccurate AI Overviews in Search, prompting renewed criticism from researchers who argue the burden shouldn’t fall on users to fact-check AI output.
Pichai’s comments arrive as Google ramps up its investment footprint in the UK, pledging £5bn for AI infrastructure, talent pipelines, and future model training - a move Westminster hopes will cement Britain as the world’s No. 3 AI powerhouse behind the US and China.
However, he also sounded the alarm on AI’s rapidly growing energy demands.
Data-centre power consumption already accounts for 1.5 per cent of global electricity, and Pichai admitted Alphabet’s expanding AI operations have “impacted” its climate targets.
Even so, he reaffirmed the company’s commitment to achieving net-zero by 2030 through new clean-energy projects.
Despite the risks, Pichai said AI remains “the most profound technology” ever developed, one that will reshape jobs but create new opportunities.
He said: “People who learn to use these tools will do better.”
