Pichai warns no company can dodge the impact
Sundar Pichai says every firm will feel the strain if the AI boom breaks. He told a major British news outlet that today’s surge in AI investment marks an “extraordinary moment” but also shows clear “irrationality”. He highlighted rising concern in Silicon Valley as valuations jump and companies push huge sums into fast-growing AI products. Pichai said his company can manage a downturn but still faces risk. “I think no company is going to be immune, including us,” he said.
Wide-ranging conversation at Google’s California base
Pichai spoke about energy demand, delayed climate goals, UK investment, model accuracy and the future of work. The interview arrives during one of the most intense periods of AI market scrutiny. Alphabet’s value doubled in seven months to $3.5tn as investors gained confidence in its ability to compete with OpenAI. Analysts now watch Alphabet’s development of specialised AI superchips that challenge Nvidia, which recently reached a record $5tn valuation.
Some analysts question the complex $1.4tn structure of deals tied to OpenAI, whose revenues remain tiny compared with the scale of investment. Pichai said investment cycles often “overshoot”, echoing warnings from the dot-com era. He compared the current AI rush to the early internet, which saw excess spending but still changed the world.
Business leaders echo similar warnings
JP Morgan chief Jamie Dimon recently issued a similar caution. He said AI spending will deliver results but warned that some investment will “probably be lost”. Pichai claimed that Google’s full control of its technology stack — from chips to models to video platforms — strengthens its stability during any downturn.
Alphabet accelerates UK expansion
Alphabet pledged £5bn for UK infrastructure and research across 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 its AI models in the UK “over time”, a move supported by government leaders who want the nation to become the world’s third major AI power after the US and China. “We are committed to investing in the UK in a pretty significant way,” he said.
Huge energy demand creates new pressures
Pichai warned about the “immense” electricity needs of AI. Global AI activity used 1.5% of worldwide power last year. He said countries, including the UK, must grow their energy supply and expand infrastructure. “You don’t want to constrain an economy based on energy, and that will have consequences,” he said.
He admitted that AI’s rising energy use slows Alphabet’s climate progress, but the firm still targets net zero by 2030 through investment in new energy technology. “The rate at which we were hoping to make progress will be impacted,” he said.
AI prepares to reshape every workplace
Pichai called AI “the most profound technology” ever built. He said society must handle disruption but will also gain major opportunities. He expects many roles to evolve and said workers must adapt to succeed. Anyone who learns to use AI tools, whether teacher or doctor, will gain a strong advantage. “Those who adapt will thrive,” he said.
