Alphabet CEO warns no company safe from AI bubble risks
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Alphabet's Sundar Pichai warns that no company, including Google, is immune if the artificial intelligence bubble bursts.
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Sundar Pichai, CEO of Google and Alphabet, listens during a meeting of the White House Task Force on Artificial Intelligence Education in the East Room of the White House, Thursday, September 4, 2025, in Washington. (AP Photo/Alex Brandon)
Alphabet CEO Sundar Pichai has warned that no company will escape unscathed if the artificial intelligence boom collapses, as concerns grow over inflated valuations and speculative investment across the tech sector.
Speaking to the BBC in an interview published Tuesday, Pichai described the AI surge as an "extraordinary moment," but admitted that there are "elements of irrationality" in the current market. His comments echo earlier concerns from analysts who see parallels with the dotcom bubble of the early 2000s.
"I think no company is going to be immune, including us," Pichai said when asked how Google might respond to a potential AI bubble burst.
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Google and Alphabet navigate booming AI investments
Shares of Alphabet, Google’s parent company, have surged approximately 46% in 2025, driven by investor confidence in its ability to compete with OpenAI, the creator of ChatGPT. This optimism has propelled a wave of financial backing into the sector, with tech firms globally racing to expand AI capabilities.
However, Pichai acknowledged that such momentum carries financial risks, especially as companies deploy significant capital into large-scale AI infrastructure.
In the United States, apprehensions over high AI valuations have begun to weigh on broader financial markets. Similarly, UK officials have cautioned against a potential speculative bubble in the tech sector.
Despite these concerns, Alphabet remains committed to its international AI agenda. In September, the company announced it would invest £5 billion in the UK over two years. The funding includes the construction of a new data center and expanded support for DeepMind, Alphabet’s London-based AI research division.
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UK pushes to become global AI superpower
Pichai also confirmed plans for Google to begin training AI models in the UK, a move aligned with UK Prime Minister Keir Starmer’s vision to position the country as the world’s third AI superpower, behind the US and China.
The strategy reflects a broader trend among leading AI firms to diversify research and development efforts globally while responding to geopolitical dynamics in AI governance.
While championing AI development, Pichai warned about the "immense" energy demands of AI systems. He admitted that Alphabet’s net-zero targets would be delayed due to the rising computational power required to scale these models.
As the artificial intelligence landscape continues to evolve rapidly, Pichai’s remarks highlight both the sector’s transformative potential and its growing economic and environmental risks.
