Despite the AI boom showing no signs of slowing down, as shown by Nvidia’s stellar results this week, Google’s chief Sundar Pichai has sounded the alarm at the risk of a technology‑driven bubble.

The CEO of Alphabet Inc. told the BBC that while the enthusiasm surrounding AI is “very rational”, there are unmistakable elements of “irrationality” creeping into the sector.

Pichai likened the current AI investment surge to the late‑1990s internet boom when valuations soared before the dot‑com bubble burst.

“We can look back at the internet right now. There was clearly a lot of excess investment,” he said, adding that none of us would question how profound the internet proved to be. “I expect AI to be the same.”

Pichai made clear that no company, including Google, would be immune from the fallout if things turn.

Pichai even suggested that AI could one day perform his own role as a CEO.

“I think what a CEO does is maybe one of the easier things for AI to do one day,” he said.

He added that this isn’t a call to retreat from AI. The moment is “extraordinary,” with genuine value being created, but the scale of investment means the risk of overshoot is real.

Pichai highlighted two further concerns: the massive energy costs behind training AI models and the labour market disruption ahead.

He noted the “immense” electricity demand of advanced AI systems could slow Alphabet’s net‑zero goals. Meanwhile, workers in all fields, including teachers, doctors and executives, will need to adapt to new AI tools or risk falling behind.