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Alphabet CEO Sundar Pichai<\/a> has admitted that an artificial intelligence (AI) bubble burst would have widespread impact across companies, including Google.<\/p>\n<\/div>\n Speaking to the BBC on November 18, the tech chief said that \u201cno company would be immune\u201d including Google<\/a>, if \u201cirrational exuberance\u201d in the AI market leads to a market bubble burst.<\/p>\n<\/div>\n But overall, Pichai was optimistic about AI<\/a>, noting that the scale of investments by the company has grown. \u201cFour years ago, we were spending less than $30 billion per year. This year that number is going to be over $90 billion, and to collectively add, what all the companies are doing, we have well over a trillion dollars of investment going into building infrastructure for AI,\u201d he noted.<\/p>\n<\/div>\n The businessman explained the \u201cscale equation\u201d as what companies built over the past 10-20 years, is now being built in the next couple of years.<\/p>\n<\/div>\n While optimistic about the technology, Pichai admitted that investment cycles can have \u201cirrational\u201d phases. When questioned directly on the bubble problem he said, \u201cThere are two ways of thinking about the question. I look at the actual progress, we are making in terms of the AI model capabilities, and people are using, and they’re deploying it. Consumers are excited and companies are using, so you see real demand.\u201d<\/p>\n<\/div>\n He added that while the excitement \u201cis very rational, we go through these investment cycles<\/a>, there are moments we overshoot.\u201d<\/p>\n<\/div>\n Pichai sought to explain that despite risks of a burst, AI is more like the internet that a passing fad. \u201cCollectively as an industry, we can look back at the internet right now and there was clearly a lot of excess investment<\/a>. But none of us would question whether the internet was profound or fundamentally changed how we work digitally as a society. I expect the AI to be the same. So I think it’s both rational and there are elements of irrationality.\u201d<\/p>\n<\/div>\n When asked if Google <\/a>would be immune from a burst because of investments across technologies, Pichai was clear: \u201cNo company is going to be immune, including us.\u201d<\/p>\n<\/div>\n But added, \u201cIf you over invest, you will have to work through that phase. But you know, we are better positioned for many years. We’ve taken a deeply differentiated approach to AI.\u201d<\/p>\n<\/div>\n According to Pichai, one of the first things he did as CEO was to shift the company to an AI first approach. What does this mean? He said, \u201cWe call it a full stack approach. From the underlying physical infrastructure <\/a>to the research that you need to do to drive this technology forward, to deploying it in products and platforms. We have taken the deep approach. So we are able to invest at scale and make it work across all these products and businesses And I think so we are better positioned to take a long-term view.\u201d<\/p>\n<\/div>\n Notably, Alphabet shares have surged about 46% in 2025, with even tech shy Warren Buffett<\/a>‘s Berkshire Hathaway acquiring a $4.93 billion stake in the company.<\/p>\n<\/div>\n Notably, Pichai’s statements come amid rising concerns among investors that tech valuations have peaked. At risk is the trillions of dollars<\/a> flushed into AI commitments such as advanced chips and billion-dollar data centres.<\/p>\n<\/div>\n Investors’ worries have heightened as US economy bellwether Berkshire sits on record cash reserves instead of investing, and after billionaire Peter Thiel<\/a>‘s hedge fund and Masayoshi Son’s SoftBank Corp both sold off stake in AI chips major Nvidia last week.<\/p>\n<\/div>\n According to a regulatory filing with the United States Securities and Exchange Commission (US SEC) on November 14, Thiel Macros sold around 5,37,742 Nvidia <\/a>shares \u2014 its entire stake in the tech company \u2014 worth around $100 million, as of closing on September 30, 2025.<\/p>\n<\/div>\nSo, does Sundar Pichai think AI is a bubble ready to burst?<\/h2>\n
What about AI bubble burst impact on Google?<\/h2>\n
What are the fears over AI bubble burst?<\/h2>\n