Google informs that the global race for AI dominance is intensifying—so are the challenges.
The tech firms are investing in artificial intelligence AI and concerns over a potential bursting of the AI bubble have resurfaced with intensity.
As U.S. technology stocks recently faced their sharpest pullback since the Trump tariff-induced sell-off last April 2025, the Google boss fears that every company would be affected if the AI bubble bursts in the near future.
Head of Google’s parent company Alphabet Inc., Sundar Pichai said, “While the growth of Artificial Intelligence AI investment had been an ‘extraordinary moment,’ there was some ‘irrationality’ in the current AI boom."
The fear escalates in Silicon Valley and beyond as the value of AI tech companies has soared in recent months, and companies are spending big on the mushrooming industry.
Although AI was a driving force behind Alphabet’s shares soaring 46% as a new tech revolution, Google CEO Pichai is drawing parallels to the dot-com era, warning that today’s enthusiasm is running ahead of real-world progress.
When asked, CEO Pichai said Google would be immune to the impact of an AI bubble bursting, but the tech giant issued a warning.
“I think no company is going to be immune, including us,” said Pichai.
Tech bosses fear that trillions of dollars could be wiped out in the case of a financial market crash, while other experts worldwide, including central banks, are also warning of risks.
With dependence on tech and AI growing, critics argue that betting on these profits is a gamble, stressing that the future remains uncertain.
Pichai said Google's unique model of owning its own 'full stack' of technologies—from chips to YouTube data to models and frontier science—put it in a better position to ride out any AI market turbulence.
The American tech giant is also expanding its footprint in the UK. Alphabet announced in September 2025 that it was investing in the UK's artificial intelligence models, committing £5bn to infrastructure and research over the next 2 years.
Pichai informed that Alphabet will develop ‘state of the art’ research work in the UK, including at its key AI unit DeepMind, based in London.
He further informed that it would be the first time Google would take a step that has been pushed for to train AI models in the UK.
An AI boom is a period of rapid growth in the field of artificial intelligence. The current boom is an ongoing period that began in 2010 and accelerated in the 2020s.
A few examples include Large Language Models LLMs and other apps like OpenAI, Google DeepMind, and ChatGPT—the most visited websites globally.
The AI bubble is a term used to describe the theorized market bubble growing amid the current AI boom.
It is considered the period of rapid AI progress that is directly affecting the broader economy.
