Google CEO Sundar Pichai has issued a sobering warning about the current excitement around artificial intelligence (AI), emphasizing that if the AI investment bubble were to collapse, no company—including Google itself—would emerge unscathed. In an exclusive interview with the BBC, Pichai acknowledged the extraordinary boom in AI development and investment but cautioned that this surge is accompanied by a degree of irrationality in the market.

Pichai described the AI moment as both revolutionary and volatile. Drawing parallels to previous tech cycles such as the internet boom, he noted that while excessive investment bubbles often burst, the underlying technology remains transformative in the long run. He stressed that AI represents one of humanity’s most profound technological advances but recognized the potential societal disruptions accompanying this progress, including job transitions and evolving industry dynamics. According to him, success in the future will depend heavily on people’s ability to harness AI tools rather than the elimination of traditional professions like teaching or medicine.

Acknowledging the risks of a market correction, Pichai remarked, “I think no company is going to be immune, including us.” This highlights the widespread ripple effects a downturn in AI enthusiasm or overvaluation could cause across the global tech landscape. The comments come amid rising concern in Silicon Valley about whether the rapid influx of capital, soaring valuations, and hype around AI startups could lead to an unsustainable bubble.

Beyond the economic implications, Pichai also raised concerns regarding AI’s growing energy demands, which could slow progress toward climate goals such as Google’s plan to reach net-zero emissions by 2030. He urged innovation in energy infrastructure to support the immense computational needs of AI without constraining economic growth. On the investment front, Pichai shared Google’s ongoing commitment to growing its AI capabilities worldwide, including significant investments planned in the UK to train AI models, illustrating an optimistic long-term vision despite short-term uncertainties.

Sundar Pichai’s candid reflections underscore a critical juncture in the AI industry—balancing groundbreaking opportunities with risks of market excess and societal impact. His perspective encourages cautious optimism, urging companies and communities to prepare for both challenges and transformations ahead.