There is some "irrationality" happening in the AI boom, and a burst bubble would not spare anyone, Google CEO Sundar Pichai told the BBC.
Why it matters: Investors are increasingly nervous about the health of the AI frenzy, and the sustainability of the trillions in pledged spending in the coming years.
What they're saying: If the bubble bursts, "I think no company is going to be immune, including us," Pichai said in what was billed as an exclusive interview.
- "We can look back at the internet right now. There was clearly a lot of excess investment, but none of us would question whether the internet was profound," he told the British broadcaster. "I expect AI to be the same."
- "So I think it's both rational and there are elements of irrationality through a moment like this."
By the numbers: Shares in Google parent Alphabet closed at an all-time high Monday, having risen 51% this year alone.
- Despite Pichai's warning, the stock was up another 0.5% in premarket trading early Tuesday.
- The company is benefitting from surging demand for AI infrastructure, as well as growing consumer adoption of its own platform Gemini.
The bottom line: Investors continue to aggressively buy stocks linked to the AI boom — but they're also asking more questions about how long it can last.
Go deeper: Why the AI economy might not be 1990s redux
