Pichai warns no company can stay protected
Sundar Pichai says every company will feel the impact if the AI surge falters. He told a major British news outlet that the current run of AI investment creates an “extraordinary moment” but also shows clear signs of “irrationality”. He pointed to rising concern in Silicon Valley as valuations soar and firms invest huge sums in fast-growing AI systems. 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 new industry pressure
Pichai discussed rising energy demand, delayed climate goals, growing UK investment, model accuracy and the changing future of work. The interview comes during intense scrutiny of the AI sector. Alphabet’s valuation doubled in seven months to $3.5tn as investors grew more confident in its ability to compete with OpenAI. Analysts also monitor Alphabet’s effort to develop specialised AI superchips that challenge Nvidia, which recently reached a record $5tn valuation.
Some analysts question the complex $1.4tn web of deals tied to OpenAI, whose revenues remain far smaller than planned investments. 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 heavy overinvestment but still changed global life.
Leading executives share similar concerns
JP Morgan chief Jamie Dimon recently warned that AI investment will deliver returns but added that some funding 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 resilience in turbulent markets.
Alphabet strengthens its UK role
Alphabet pledged £5bn for UK research and infrastructure across the next two years. Pichai said the company will expand advanced 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 bring the country closer to the US and China in global AI power. “We are committed to investing in the UK in a pretty significant way,” he said.
Energy demands challenge climate progress
Pichai warned about the “immense” electricity needs created by AI. Global AI activity consumed 1.5% of the world’s 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 rising energy use delays Alphabet’s climate progress, but the firm still aims for net zero by 2030 through investment in new energy technology. “The rate at which we were hoping to make progress will be impacted,” he said.
AI prepares to reshape work worldwide
Pichai called AI “the most profound technology” ever created. He said society must handle disruption but will also gain new 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 strong advantage. “Those who adapt will thrive,” he said.
