Google’s CEO believes the current wave of investment in artificial intelligence contains “irrational” elements, even though this very frenzy has helped fuel a powerful rally in technology stocks this year.
In an interview with BBC on November 17, Google CEO Sundar Pichai warned that no company would be immune if an “AI bubble” were to burst.
Pichai said the surge in AI investment shows signs of “irrationality,” despite the fact that the AI boom has been a major driver behind this year’s strong gains in tech stocks.
Concerns about a potential “AI bubble” bursting have already triggered a wave of investor sell-offs, dragging global stock markets sharply lower in recent months.
According to Pichai, no company will be spared from the impact if the AI bubble pops. “I don’t think any company will be immune, including us,” he said.
The interview also touched on long-standing concerns surrounding AI, such as its energy requirements (which could affect climate goals), the accuracy of the technology, and its impact on the labor market.
Pichai warned that AI’s energy demand is “very large,” noting that according to calculations from the International Energy Agency (IEA), the sector accounted for up to 1.5% of global electricity consumption last year.
AI’s computing footprint could reach 200 GW by 2030, equivalent to Brazil’s annual electricity usage.
Geopolitical tensions have contributed to a race to build massive data centers housing tens of thousands of chips, requiring enormous power supplies and extensive cooling systems.
Pichai said countries need to take action to expand new energy sources and strengthen infrastructure. For Google specifically, the rising energy demand from AI may slow Alphabet’s progress toward its climate goal of achieving carbon neutrality by 2030.
Regarding the labor market, the CEO said AI will bring “social disruption,” potentially even replacing high-level positions like his own and forcing “everyone to adapt.”
Those who know how to work with AI will have an advantage—whether they are teachers or doctors, professions that have always been essential.
Alphabet recently reported its first-ever quarter with revenue exceeding 100 billion USD, thanks to its ability to capitalize on the AI wave. The company is sharply increasing its spending on AI infrastructure and accelerating the rollout of AI features in Google Search and its Gemini models.
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