Google’s Sundar Pichai warns of AI spending ‘irrationality’ — saying ‘no company’ is safe if bubble bursts

Google boss Sundar Pichai admitted that he sees some “irrationality” driving the artificial intelligence boom – and warned that “no company” would emerge unscathed if the bubble bursts.

Pichai – whose company has teed up $93 billion in capital expenditures this year alone as it boosts development of the fledgling technology – flagged the risk to markets amid a raging debate on Wall Street about whether AI companies are overvalued.

“Given the potential of this technology, the excitement is very rational,” Pichai told the BBC in an interview published Tuesday. “It’s also true, when we go through these investment cycles, there are moments we overshoot collectively as an industry.”

The Google CEO drew some parallels between current market conditions around AI investment and the internet boom in which valuations of early tech companies soared until the so-called “dot-com bubble” burst in 2000.

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