Even Sundar Pichai—CEO of Alphabet, Google’s parent company—has sounded alarms over today’s artificial intelligence (AI) craze. He cautioned that “no company is going to be immune” if we see an AI bubble burst. His comments come at a time of extensive public and private investment in and excitement around AI technologies. He paints this growth as a combination of smart growth and what he terms “irrationality” in certain sectors.
Pichai highlighted that any company, even Alphabet, would suffer catastrophic effects if the nascent AI market were to go through a downturn. He cautioned that as companies pursue these objectives, they should proceed carefully through the constantly changing world of AI technology. “I think no company is going to be immune, including us,” he stated, underscoring the unpredictable nature of technological advancements in the sector.
Clearly, Alphabet is making some serious moves to maintain a strong foothold in this changing landscape. This investment will see the company develop £5 billion worth of AI infrastructure and innovation across the United Kingdom – over the next two years. The investment aims to put the UK in a leading position in the global AI landscape. Google’s CEO Sundar Pichai thinks training large models in the UK would help it become the world’s third AI superpower, behind the US and China.
“We will have to work through societal disruptions,” Pichai noted, acknowledging that AI’s impact will significantly alter traditional job roles. He stated that while professions such as teaching and medicine will endure, those who adapt and learn to leverage AI tools will thrive. “It will evolve and transition certain jobs, and people will need to adapt,” he added.
Indeed, Pichai pointed out during the call that Alphabet has a proprietary “full stack” of technologies. This production edge has allowed the firm to outflank competitors during market downturns and turbulence. At the same time, the company’s valuation has increased to nearly $3.5 trillion (£2.7 trillion). In less than seven months, its shares have already doubled in value. Pichai will hope to take advantage of such financial strength to make significant investments within the shores of the UK. He aims to create world-leading basic research at DeepMind’s London HQ.
As part of this strategic expansion, Pichai unveiled a massive vision for Alphabet’s future. The company’s strategy now will be to harness new energy sources and scale up its energy ecosystem. He cautioned against constraining economic growth due to energy limitations, stating, “You don’t want to constrain an economy based on energy, and I think that will have consequences.” This statement is an indicator of how much he understands the need for more energy developments in order for AI, and other sectors, to grow sustainably.
Pichai’s urgent warnings sound particularly prescient today, given similar warnings from other powerful leaders, including JP Morgan’s CEO Jamie Dimon. Dimon is right to raise alarms about the dangers of excessive investment in AI technologies. Even Pichai seemed to recognize this feeling. He likened the current AI investment environment to the dot com boom – admitting that there was a lot of excess but paved the way for revolutionary innovations. “There was clearly a lot of excess investment, but none of us would question whether the internet was profound,” he said, drawing parallels between past technological evolutions and current trends.
Looking forward, Pichai anticipates that advancements in AI will reshape industries and require a shift in how individuals approach their careers. And I obviously would expect AI to be that way,” he added. Specifically, he argues that there’s irrationality in today’s investments. He is equally optimistic because he recognizes a logical basis for expansion as the world adjusts to game-changing innovations.