Pichai says no company will be immune
Sundar Pichai warns every company will feel the impact if the AI surge slows. He told a major British news outlet that the current AI investment wave marks an “extraordinary moment” but also carries signs of “irrationality.” He highlighted growing concern in Silicon Valley as valuations rise and firms spend massive sums on AI technology. Pichai said Google can weather a slowdown but still faces exposure. “I think no company is going to be immune, including us,” he said.
Inside Google: pressures on the AI sector
Pichai discussed rising energy demand, delayed climate goals, UK investment, model accuracy, and the future of work. The interview comes amid heightened scrutiny of the AI market. Alphabet’s value doubled in seven months to $3.5tn as investors grew confident in its ability to compete with OpenAI. Analysts also track Alphabet’s push to develop specialised AI superchips that rival Nvidia, which recently reached a $5tn valuation.
Some analysts question the $1.4tn web of deals surrounding OpenAI, whose revenues remain far below planned investments. Pichai said investment cycles often “overshoot,” echoing warnings from the dot-com era. He compared the AI boom to the early internet, which saw heavy overinvestment but still reshaped global industries.
Industry leaders raise similar warnings
JP Morgan chief Jamie Dimon recently said AI spending will deliver returns but warned that some investment will “probably be lost.” Pichai stressed that Google’s full control of its technology stack—from chips to models to data platforms—gives it resilience in volatile markets.
Alphabet strengthens UK operations
Alphabet pledged £5bn for UK research and infrastructure over the next two years. Pichai said the company will expand advanced research in the UK, especially at DeepMind in London. He confirmed Google will train AI models in the UK “over time,” a move supported by government leaders seeking to elevate the country as the world’s third major AI power. “We are committed to investing in the UK in a pretty significant way,” he said.
Energy demands challenge climate targets
Pichai warned that AI’s “immense” electricity use accounted for 1.5% of global power last year. He said countries, including the UK, must expand energy supply and improve infrastructure. “You don’t want to constrain an economy based on energy, and that will have consequences,” he said.
He acknowledged that rising AI energy demand slows Alphabet’s climate progress, though the company still targets net zero by 2030 through investment in new energy technologies. “The rate at which we were hoping to make progress will be impacted,” he said.
AI set to reshape global work
Pichai called AI “the most profound technology” ever created. He said society will face disruption but also gain new opportunities. He expects many roles to evolve and urged workers to adapt. Anyone who learns to use AI tools, from teachers to doctors, will gain a clear advantage. “Those who adapt will thrive,” he said.
