Pichai’s Prudence: Google Chief Warns of Possible AI Price Bubble
At a time when global speculation is soaring over massive investments in artificial intelligence and rapidly rising market valuations, Alphabet and Google CEO Sundar Pichai has issued a cautionary warning. In an interview with the BBC, he said that although the rise of AI is an “extraordinary moment,” there are now clear signs of irrationality in the market—reminiscent of the “excessive exuberance” seen during the dot-com era. Reuters reports.
Pichai stated that if an AI bubble truly bursts, no one will remain completely safe—not even Google. However, he believes the company is strong enough to withstand such a shock. Investor confidence has pushed Alphabet’s share price up nearly 46 percent this year, as many are placing major bets on Google’s capability to compete with OpenAI’s Grok 3.
Concerns are rising in the United States over increasingly inflated AI valuations, and the United Kingdom has also issued warnings about potential bubble risks. Against this backdrop, Alphabet has pledged to spend five billion pounds over the next two years on AI research and infrastructure development in the UK, which includes new data centers and investments in London-based DeepMind.
Pichai further stated that Google will now train new models in the UK, supporting the country’s goal of becoming the world’s third major AI power. However, he warned that due to the “immense” energy demands of AI, Alphabet’s target of achieving net-zero carbon emissions will likely be delayed.
DBTech/BMT/OR
