Pichai warns that no company can avoid the effects
Sundar Pichai says every company will feel the strain if the AI surge slows sharply. He told a major British news outlet that today’s wave of AI investment marks an “extraordinary moment” but also shows signs of “irrationality”. He pointed to rising concern in Silicon Valley as valuations climb fast and firms inject huge sums into expanding AI technology. Pichai said his company can withstand a downturn but still faces exposure. “I think no company is going to be immune, including us,” he said.
Interview highlights growing pressures on the sector
Pichai discussed energy demand, delayed climate goals, UK investment, model accuracy and the changing nature of work. The interview comes at a time of intense scrutiny across the AI market. Alphabet’s value doubled in seven months to $3.5tn as investors gained confidence in its ability to rival OpenAI. Analysts also watch Alphabet’s push to develop specialised AI superchips that compete with Nvidia, which recently reached a historic $5tn valuation.
Several analysts question the complex $1.4tn web of deals linked to OpenAI, whose revenues remain small compared with the massive investments planned. Pichai said investment cycles often “overshoot”, echoing warnings from the dot-com era. He compared the current AI boom to the early internet, which saw major overinvestment but still reshaped modern life.
Warnings echoed by leading executives
JP Morgan chief Jamie Dimon recently warned that AI spending will pay off but said some investment will “probably be lost”. Pichai argued that Google’s full control of its technology stack — from chips to models to video platforms — gives the company strong protection in volatile markets.
Alphabet deepens its UK commitment
Alphabet pledged £5bn for UK infrastructure and research over the next two years. Pichai said the company will expand high-level research in the UK, especially at DeepMind in London. He confirmed that Google will train AI models in the UK “over time”, a step supported by government leaders who aim to make the country the world’s third major AI power after the US and China. “We are committed to investing in the UK in a pretty significant way,” he said.
Rising energy needs create new challenges
Pichai warned about the “immense” electricity demand created by AI. Global AI activity consumed 1.5% of worldwide power last year. He said countries, including the UK, must expand energy supply and upgrade infrastructure. “You don’t want to constrain an economy based on energy, and that will have consequences,” he said.
He admitted that heavy AI energy use slows Alphabet’s climate progress, but the firm still targets net zero by 2030 with new energy technologies. “The rate at which we were hoping to make progress will be impacted,” he said.
AI prepares to reshape global employment
Pichai called AI “the most profound technology” ever developed. He said society must handle disruption but will also gain major opportunities. He expects many roles to shift and said workers must adapt to succeed. Anyone who learns to use AI tools, whether teacher or doctor, will gain a clear advantage. “Those who adapt will thrive,” he said.
