Google's Sundar Pichai Warns of AI Boom Bubble and Wild Investment Ride

Sundar Pichai, the CEO of Alphabet, which owns Google, recently spoke to the BBC about the rapid growth and investment in artificial intelligence, or AI. He said that while this is an extraordinary time for AI, there are signs that some of the money being poured into the industry might not be completely rational. Pichai warned that if the AI bubble bursts, no company, including Google, would be immune to its effects. He explained that the excitement around AI has led to a huge increase in the value of tech companies, but this could be risky if the market becomes unstable.

The value of Alphabet's shares has doubled in just seven months, reaching $3. 5 trillion, as investors become more confident in Google's ability to compete with other AI companies like OpenAI and Nvidia. Google is developing special superchips for AI, which are meant to rival Nvidia's technology. However, some experts are skeptical about the huge amount of money being invested in AI, especially since some companies, like OpenAI, are expected to make much less money than the amount being invested in them. This situation reminds some people of the dotcom boom and bust in the late 1990s, when internet companies became very valuable before the bubble burst and many lost their value.

Pichai said that Google is in a good position because it owns its own technology, from chips to data and research. He also talked about Google's plans to invest in the UK, including building new research centers and training AI models there. This could help the UK become a major player in AI, after the US and China. However, Pichai warned that AI uses a lot of energy, which could slow down progress on climate goals. He said that new sources of energy and better infrastructure are needed to support AI growth. Pichai also believes that AI will change the way people work, creating new opportunities but also causing disruptions. He said that people who learn to use AI tools will do better in their jobs, whether they are teachers, doctors, or in other professions. Overall, Pichai thinks AI is the most important technology humans have ever worked on, and it will have a big impact on society.