Pichai warns no company is safe
Sundar Pichai says every company will feel the impact if the AI boom falters. He told a major British news outlet that today’s AI investment surge marks an “extraordinary moment” but also shows clear “irrationality.” He highlighted growing concern in Silicon Valley as valuations rise and companies pour vast sums into AI technology. Pichai said Google can endure a slowdown but remains exposed. “I think no company is going to be immune, including us,” he said.
Interview highlights pressures across the AI sector
Pichai discussed soaring energy demands, delayed climate goals, UK investment, model accuracy, and the future of work. The interview comes amid intense scrutiny of the AI market. Alphabet’s valuation doubled in seven months to $3.5tn as investors gained confidence in its ability to compete with OpenAI. Analysts also track Alphabet’s push to develop specialised AI superchips that rival Nvidia, which recently hit a $5tn valuation.
Some analysts question the complex $1.4tn web of deals surrounding OpenAI, whose revenues remain far below planned investment levels. Pichai said investment cycles often “overshoot,” echoing warnings from the dot-com era. He compared the AI boom to the early internet, which saw massive overinvestment but still reshaped global life.
Finance leaders raise similar concerns
JP Morgan chief Jamie Dimon recently warned that AI investment will yield returns but said some funds will “probably be lost.” Pichai stressed that Google’s full control of its technology stack — from chips to models to data platforms — provides stronger resilience in turbulent markets.
Alphabet deepens UK presence
Alphabet pledged £5bn for UK research and infrastructure over the next two years. Pichai said the company will expand advanced research in the UK, especially at DeepMind in London. He confirmed Google will train AI models in the UK “over time,” a move backed by government officials aiming to elevate the country as the world’s third major AI power. “We are committed to investing in the UK in a pretty significant way,” he said.
Rising energy needs challenge climate ambitions
Pichai warned about AI’s “immense” electricity consumption, which accounted for 1.5% of global power last year. He said countries, including the UK, must expand energy supply and infrastructure. “You don’t want to constrain an economy based on energy, and that will have consequences,” he said.
He admitted that AI’s high energy use slows Alphabet’s climate progress, though the firm still targets net zero by 2030 through investment in new energy technologies. “The rate at which we were hoping to make progress will be impacted,” he said.
AI set to transform work across all sectors
Pichai called AI “the most profound technology” ever created. He said society must navigate disruption but will also gain new opportunities. He expects many jobs to evolve and said workers must adapt to thrive. Anyone who learns to use AI tools, from teachers to doctors, will gain a clear advantage. “Those who adapt will thrive,” he said.
