Published by Global Banking & Finance Review®
Posted on November 18, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleGoogle CEO Sundar Pichai warns that no company is immune to a potential AI bubble burst, citing market irrationality and energy concerns.
LONDON -Alphabet Chief Executive Sundar Pichai said no company would be unscathed if the artificial intelligence boom collapses, as soaring valuations and heavy investment in the sector fuel concerns of a bubble.
Pichai said in an interview with the BBC published on Tuesday that the current wave of AI investment was an "extraordinary moment" but acknowledged "elements of irrationality" in the market, echoing warnings of "irrational exuberance" during the dotcom era.
There has also been much debate among analysts about whether AI valuations are sustainable.
Asked about how Google would cope with a potential bursting of a bubble, Pichai said he thought it could weather the storm but added: "I think no company is going to be immune, including us."
Alphabet shares have surged about 46% this year, as investors bet on its ability to compete with ChatGPT-maker OpenAI.
In the United States, concerns about lofty AI valuations have begun to weigh on broader markets, while British policymakers have also flagged bubble risks.
In September, Alphabet pledged 5 billion pounds over two years for UK AI infrastructure and research, including a new data centre and investment in DeepMind, its London-based AI lab.
Pichai also told the BBC in the interview conducted at Google's California headquarters that Google would begin training models in Britain, a move Prime Minister Keir Starmer hopes will bolster the country's ambition to be the world's third AI "superpower" after the United States and China.
Pichai also warned of the "immense" energy needs of AI and said Alphabet's net-zero targets would be delayed as it scales up computing power.
(Reporting by Sam Tabahriti; Editing by Edwina Gibbs)
Artificial Intelligence (AI) refers to the simulation of human intelligence in machines programmed to think and learn like humans. It encompasses various technologies, including machine learning and natural language processing.
Valuations are estimates of the worth or value of an asset, company, or investment. They are essential for making informed financial decisions and can be influenced by market conditions and investor sentiment.
Sustainability in finance refers to the practice of making investment decisions that consider environmental, social, and governance (ESG) factors, aiming to create long-term value while minimizing negative impacts on society and the environment.
Explore more articles in the Headlines category
