LONDON, November 18, 2025 – Alphabet Inc. (GOOGL.O) CEO Sundar Pichai cautioned that no company would escape unscathed if the ongoing artificial intelligence (AI) boom were to collapse. Speaking in an interview with the BBC, Pichai highlighted both the excitement and the risks associated with the rapid surge in AI investment and valuations.

“This is an extraordinary moment in AI, but there are elements of irrationality in the market,” Pichai said, echoing past warnings of “irrational exuberance” seen during the dotcom era. The comments come amid widespread analyst debate about whether current AI valuations are sustainable, particularly as investors pour billions into AI startups and established tech firms expand their AI capabilities.

Alphabet’s Position Amid AI Market Volatility

While Pichai expressed confidence that Google and Alphabet could weather potential market shocks, he emphasized that no company is immune, including industry giants like Alphabet. This cautionary note comes as Alphabet shares have surged approximately 46% year-to-date, driven largely by investor confidence in the company’s ability to compete with AI pioneers such as OpenAI, the creator of ChatGPT.

In response to concerns over inflated AI valuations, Pichai outlined Alphabet’s ongoing investments in AI infrastructure. In September, the company pledged £5 billion over two years for UK AI research and infrastructure, including the expansion of a new data center and investment in DeepMind, its London-based AI lab.

Expanding AI Operations in the UK

Pichai also confirmed that Google would begin training AI models in Britain, supporting Prime Minister Keir Starmer’s goal to position the UK as a global AI “superpower,” trailing only the United States and China. He acknowledged the immense energy demands of AI computation, noting that Alphabet’s net-zero targets would likely be delayed as the company scales up its computing power to support cutting-edge AI projects.

Broader Implications of an AI Market Bubble

Market analysts and policymakers have raised concerns that soaring AI valuations could have ripple effects on global technology markets. In the United States, elevated AI valuations have begun to weigh on broader market sentiment, while UK regulators have highlighted potential financial and ethical risks associated with rapid AI expansion.

Pichai’s comments underscore the delicate balance that tech companies face: pursuing aggressive AI growth while managing market expectations and operational sustainability. The warning is a reminder that even the largest technology firms are not insulated from potential downturns in the AI sector.

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Key Takeaways

• Alphabet CEO Sundar Pichai warns no company is immune if the AI bubble bursts.
• Alphabet shares have surged 46% this year, fueled by AI investor optimism.
• Google plans to train AI models in the UK, supporting the nation’s AI ambitions.
• AI’s energy-intensive infrastructure may delay Alphabet’s net-zero targets.
• Policymakers and analysts are concerned about sustainability of AI valuations.