Pichai warns every firm faces exposure
Sundar Pichai cautions that no company will escape the effects if the AI surge weakens. He told a major British news outlet that today’s explosive AI investment marks an “extraordinary moment”, yet also reveals clear “irrationality”. He noted rising concern in Silicon Valley as valuations climb and spending accelerates at record speed. Pichai said his company can endure a slowdown, but he stressed shared vulnerability. “I think no company is going to be immune, including us,” he said.
Interview highlights growing strain in the AI race
Pichai discussed soaring energy demand, delayed climate goals, UK expansion, model accuracy and the future of work. His remarks arrive as scrutiny of the AI market reaches record levels. Alphabet’s valuation doubled in seven months to $3.5tn as investors gained confidence in its ability to challenge OpenAI. Analysts also track Alphabet’s push to build advanced AI superchips that compete with Nvidia, which recently hit a $5tn valuation.
Some analysts question the tangled $1.4tn network of deals around OpenAI, whose revenues remain tiny compared with the investment tied to its rapid rise. Pichai said investment cycles often “overshoot”, echoing warnings heard during the dot-com era. He compared the current AI frenzy to the early internet, which attracted huge overinvestment but still transformed global life.
Financial leaders share similar warnings
JP Morgan chief Jamie Dimon recently said AI spending will deliver major benefits but argued that some of the huge flows of capital will “probably be lost”. Pichai noted that Google’s control of its full technology stack — including chips, data and frontier research — gives it stronger resilience during volatile periods.
Alphabet strengthens its UK commitment
Alphabet pledged £5bn to UK research and infrastructure over the next two years. Pichai said the company will expand advanced research work in the UK, especially at DeepMind in London. He confirmed that Google will train AI models in the UK “over time”, a move supported by government leaders aiming to bolster the country’s global AI standing. “We are committed to investing in the UK in a pretty significant way,” he said.
Energy use pressures long-term climate targets
Pichai said AI systems demanded “immense” amounts of electricity last year, making up 1.5% of global consumption. He argued that countries, including the UK, must expand energy supply and upgrade infrastructure. “You don’t want to constrain an economy based on energy, and that will have consequences,” he said.
He admitted that rising power needs slow Alphabet’s climate progress, though the company still aims for net zero by 2030 by backing new energy technologies. “The rate at which we were hoping to make progress will be impacted,” he said.
AI’s evolution reshapes every profession
Pichai described AI as “the most profound technology” ever created. He said society will face heavy disruption but also major breakthroughs. He expects many jobs to transform and stressed that workers must adapt. Anyone who learns to use AI tools, from teachers to doctors, will hold a clear advantage. “Those who adapt will thrive,” he said.
