Sundar Pichai, the CEO of Google's parent company Alphabet, issued a rare warning: there are &#34;irrational&#34; elements in the current AI boom, and once the potential bubble bursts, no company will be immune, not even Google.
In a recent exclusive interview with the media, Pichai acknowledged that the growth of AI investment is an &#34;extraordinary moment,&#34; but he also candidly pointed out that there are &#34;irrational&#34; factors in the current prosperity. This statement comes as concerns about an AI bubble are growing both inside and outside Silicon Valley. In recent months, valuations of AI tech companies have skyrocketed, and corporate investments in the field have reached astonishing levels.
When asked if Google could escape the impact if the AI bubble bursts, Pichai stated that the tech giant has the ability to weather potential storms, but he also warned: &#34;I think no company will be immune, including us.&#34;
In this extensive interview, Pichai also discussed the enormous energy demands brought by AI, the postponement of the company's climate goals, and the far-reaching impact of this technological revolution on employment, painting a complex picture of opportunities and severe challenges.
<h2>&#34;Irrational&#34; Moments in the AI Boom</h2>
The market's enthusiasm for AI has drawn parallels to the internet bubble of the late 1990s. At that time, optimism about new technologies pushed the valuations of early internet companies to their peaks, but the bubble ultimately burst in early 2000, leading to the collapse of many companies, stock market crashes, and impacting people's savings and pension funds. Analysts have expressed skepticism about the approximately $1.4 trillion complex transactions surrounding OpenAI, while the company's expected revenue this year is less than one-thousandth of the planned investment amount.
Pichai's comments on &#34;irrationality&#34; echo the famous warning of &#34;irrational exuberance&#34; made by former Federal Reserve Chairman Alan Greenspan before the internet bubble burst in 1996. Pichai stated, &#34;In such investment cycles, there may be 'over-investment' in the industry.&#34; However, he also believes, &#34;We can look back at the internet. There was clearly a lot of over-investment at that time, but none of us would question the profound significance of the internet. I expect AI will be the same.&#34;
The views of the Google leader have also been echoed on Wall Street. JPMorgan CEO Jamie Dimon stated last month that investments in AI will eventually pay off, but some of the funds invested in the industry &#34;may go down the drain.&#34;
Although Pichai warned that &#34;no company will be immune,&#34; he stated that Google has a unique &#34;full-stack&#34; technology model, which is the source of its confidence in weathering the storm.
This model encompasses a complete technology chain from chips to data, to models and cutting-edge science. Specifically, Alphabet is developing AI-specific superchips that can compete with NVIDIA; at the same time, its platforms like YouTube provide vast data resources.
<h2>AI is Humanity's &#34;Most Profound Technology&#34; to Date</h2>
Pichai referred to AI as the &#34;most profound technology&#34; humanity has researched to date and predicted that it will reshape the work patterns we know. &#34;We will have to undergo disruptive changes in society,&#34; he said, but this will also &#34;create new opportunities.&#34;
He believes that AI will &#34;evolve and transform certain job positions, and people will need to adapt.&#34; Those who learn to adapt to AI &#34;will do better.&#34; He emphasized:
&#34;Whether you want to be a teacher or a doctor, all these professions will continue to exist, but those who excel in these professions will be those who learn how to use these new tools.&#34;
At the same time, Alphabet is also intensifying its strategic layout in key markets. The company has committed to investing £5 billion in the UK over the next two years for infrastructure and research. Pichai stated that Alphabet will conduct &#34;cutting-edge&#34; research in the UK, with its key AI division DeepMind headquartered in London. He also mentioned for the first time that Google will &#34;train our models&#34; in the UK &#34;over time,&#34; a move seen by the UK government as a key step in solidifying its position as the world's third-largest AI &#34;superpower,&#34; after the United States and China.
The rapid development of AI is not without cost, as its enormous energy demands are becoming an increasingly severe challenge. Pichai warned that the energy demands of AI are &#34;huge&#34; and pointed out the need for action, including in the UK, to develop new energy sources and expand energy infrastructure. &#34;You wouldn't want to limit economic development because of energy issues; I think that would have consequences,&#34; he stated

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Google CEO warns that the current AI craze contains "irrational" elements, and once the bubble bursts, no company will be completely immune. Although AI is seen as the most profound technology and is expected to bring long-term value, the current surge in valuations and massive investments have drawn parallels to the internet bubble. Google has the resilience due to its "full-stack" technology, but still faces challenges such as soaring energy demands, delayed climate goals, and employment impacts

- Sundar Pichai, CEO of Alphabet, warned of "irrational" elements in the current AI boom, suggesting that no company, including Google, would be immune if a bubble bursts.  
- He acknowledged the extraordinary growth in AI investments but highlighted concerns similar to those seen during the late 1990s internet bubble, where excessive optimism led to significant market corrections.  
- Pichai emphasized that while AI presents profound opportunities and challenges, it also demands substantial energy resources, necessitating action to support sustainable development.

Google CEO warns: No company will be spared when the AI bubble bursts