Tue Nov 18 16:00:00 UTC 2025: ## Google CEO Warns of “Irrationality” in AI Boom, Predicts Industry-Wide Impact

Silicon Valley, CA – In an exclusive interview with the BBC, Alphabet CEO Sundar Pichai cautioned against the “irrationality” fueling the current boom in artificial intelligence (AI) investment, warning that a potential bubble burst would impact all companies, including Google.

Pichai acknowledged the extraordinary growth in the AI sector but echoed concerns of a potential market correction similar to the dotcom bust of the late 1990s. He highlighted the soaring valuations of AI tech companies and the influx of capital, exemplified by the complex web of deals surrounding OpenAI, while some analysts express scepticism, fueling speculation of an overinflated market.

While Google believes its unique model of owning the entire tech stack – from chips to data – positions it well to weather any potential storm, Pichai stressed that no company would be entirely immune. Alphabet shares have doubled in value in just seven months, reaching $3.5 trillion, driven by confidence in the company’s ability to compete with OpenAI.

The interview also touched upon Google’s commitment to the UK, with a planned £5 billion investment in infrastructure and research over the next two years, including specialized AI model training within the country. This move is seen as a boost to the UK’s ambition to become a leading AI superpower.

However, Pichai also raised concerns about the immense energy demands of AI, which already account for 1.5% of global electricity consumption. He emphasized the need for new energy sources and infrastructure development to avoid constraining economic growth. This energy intensiveness may also lead to a delay in Alphabet achieving its net-zero emissions target by 2030.

Finally, Pichai addressed the transformative impact of AI on the job market, predicting societal disruptions and the evolution of existing roles. He emphasized the importance of adaptation, stating that professionals who learn to utilize AI tools will thrive in the future.

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