Google CEO Sundar Pichai has issued a stark warning about the artificial intelligence boom, telling the BBC that no company, including Google, would be insulated if the current enthusiasm around AI turns into a bubble. Pichai said the surge in investment and hype has created “an extraordinary moment,” but one also marked by some “irrationality.”
He acknowledged that while AI has the potential to transform many industries, there is a growing risk that unrealistic expectations are building up and valuations could get overheated. “That is something that inherently makes things fragile,” he said.
Pichai’s comments come at a time when major tech players are pouring billions into AI development, betting on long-term growth. But he cautioned that if that optimism proves unsustainable, the fallout could be widespread. “No company, no brand, no industry is going to be immune,” he told the BBC.
Google itself has made large bets on AI, including in its cloud business, large language models, and AI chips. Pichai said part of the challenge will be managing the long-term costs associated with AI development while also preparing for a potential market correction.
“We are building for the long term,” he said, adding that Google tries to balance its innovation and infrastructure investments with more traditional business areas.
However, he also expressed caution about short-term valuations and investor pressure. The risk of overvaluing technologies that remain nascent, and whose commercial returns have not fully materialised, is something Pichai clearly takes seriously.
His warning resonates with growing concerns in other parts of the tech world. Analysts have started asking whether the current AI frenzy resembles past speculative bubbles. While companies like OpenAI, Microsoft, and Google continue to push aggressively into AI, tighter financial discipline may become necessary if sentiment shifts.
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