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Google’s parent company, Alphabet, CEO Sundar Pichai, warned that if the artificial intelligence hype bursts, every business will feel the impact. In an interview with the BBC, Pichai admitted there’s a lot of “irrational enthusiasm” fueling the surge in AI investments, which has sparked a rally in tech stocks this year.
However, concerns about the AI bubble collapsing have caused recent sell-offs, leading to sharp declines in global markets. When asked whether Google would be affected if the bubble burst, Pichai responded, “I believe no company will be immune, including us.”
The interview, published late Monday, addressed longstanding issues related to AI—including energy consumption, environmental goals, accuracy, and employment effects. Pichai highlighted AI’s enormous energy demands, which last year used about 1.5% of worldwide electricity, according to the International Energy Agency. He projected AI’s global computing needs could reach 200 gigawatts by 2030—equivalent to Brazil’s annual electricity consumption, with half of that demand in the U.S.
Tensions on the geopolitical front have accelerated the development of enormous data centers packed with tens of thousands of chips, requiring vast amounts of power and cooling. Pichai called for urgent action to develop alternative energy sources and bolster infrastructure.
He acknowledged that meeting AI’s energy needs could delay Alphabet’s climate commitments but maintained that the company still aims for carbon neutrality by 2030. AI is also expected to cause significant shifts in the job market. Pichai warned it could lead to societal disruptions and even replace CEOs, emphasizing the need for people to adapt.
He added that those who embrace AI and learn how to utilize these tools will fare better. “Whether you’re a teacher or a doctor, all professions will continue,” Pichai said. “The key is to learn how to work with these new tools.”
In October, Alphabet reported its first quarter with over $100 billion in revenue, driven largely by the AI boom. The company increased investments in AI infrastructure and rolled out new AI features across Google Search and its Gemini AI models worldwide.
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