Google CEO Sundar Pichai.

Google CEO Sundar Pichai has cautioned against the “irrationality” surrounding the ongoing artificial intelligence (AI) boom, warning that no company, including Google, would be immune if the AI bubble were to burst. He described the current moment as an “extraordinary” phase for the industry.

Speaking to the BBC at Google’s California headquarters, Pichai said, “We can look back at the internet right now. There was clearly a lot of excess investment, but none of us would question whether the internet was profound… I expect AI to be the same. So, I think it’s both rational and there are elements of irrationality through a moment like this.”

When asked whether Google could withstand a potential AI downturn, Pichai responded: “I think no company is going to be immune, including us.”

Alphabet’s market capitalisation has doubled in the past seven months to $3.5 trillion, driven by a sharp rally fuelled by the AI wave.

AI Bubble Concerns Rising Among Tech Leaders

Several other tech leaders have also voiced concerns about an AI bubble. At OpenAI’s DevDay last month, CEO Sam Altman acknowledged that parts of the AI ecosystem are already showing signs of excess. “I know it’s tempting to write the bubble story. In fact, there are many parts of AI that I think are kind of bubbly right now,” he said.

Amazon founder Jeff Bezos echoed a similar sentiment, calling the current phase an “industrial bubble” driven by AI’s sweeping influence across industries. He noted that such bubbles differ from financial ones, which can destabilise the economy. “This is kind of an industrial bubble as opposed to financial bubbles,” Bezos said, adding that industrial bubbles can actually spur innovation.

“The banking bubble… that’s just bad, that’s like 2008. Those bubbles society wants to avoid. The ones that are industrial are not nearly as bad, they can even be good. Because when the dust settles and you see who are the winners, society benefits from those inventions,” he added.