Google boss warns no company immune if AI bubble bursts

SAN FRANCISCO (AFP): The head of Google’s parent company Alphabet warned that every company would be impacted if the AI bubble were to burst, in an interview to the BBC.

Sundai Pichai acknowledged there was “irrationality” behind the boom in artificial intelligence investment, which has fueled a tech rally this year.

But fears that the AI bubble could burst have led to a selloff, sending global stock markets tumbling in recent months.

Asked if Google would be impacted by the AI bubble bursting, Pichai told the BBC: “I think no company is going to be immune, including us.”

The interview, published late Monday, covered long-standing concerns surrounding AI, including energy needs, reducing climate targets, accuracy and the impact of AI on jobs.

Pichai warned of the “immense” energy requirements of AI, which accounted for 1.5 percent of global electricity consumption last year, according to the International Energy Agency.

AI’s global computing footprint could reach 200 gigawatts by 2030 – the annual equivalent of Brazil’s electric consumption – half of that in the United States.

Geopolitical tensions have helped drive a tech frenzy to build massive data centers housing tens of thousands of chips requiring a phenomenal amount of electrical power and large-scale cool.

Pichai said action was needed to develop new energy sources and strengthen infrastructure.

The tech boss also acknowledged that the energy needs of Alphabet’s AI operations would delay the company’s climate goals, but insisted the company was still aiming for carbon neutrality by 2030.

AI will also have an impact on work as we know it, he said.

Pichai said it would cause “societal disruptions,” even potentially replace CEOs, and “people will have to adapt.”

He insisted those who adapt to AI “will do better.”

“It doesn’t matter if you want to be a teacher or a doctor. All those professions will be around, but the people who will do well in each of those professions are people who learn how to use these tools.”

Alphabet reported its first $100 billion quarterly revenue in October, which it said was buoyed by its ability to capitalize on the AI boom.

The tech giant has ramped up spending to meet demand for AI infrastructure and pushed a global rollout of AI features in Google Search and the company’s Gemini AI models.