--- title: "Google DeepMind CEO: AI investment is increasingly resembling a \"bubble,\" but \"even if the bubble bursts, we will be fine.\"" description: "DeepMind CEO Demis Hassabis warned that AI investments have shown signs of \"bubbling,\" with some startups' valuations severely detached from product and business fundamentals, and the market may face " type: "news" locale: "en" url: "https://longbridge.com/en/news/273607742.md" published_at: "2026-01-25T09:52:12.000Z" --- # Google DeepMind CEO: AI investment is increasingly resembling a "bubble," but "even if the bubble bursts, we will be fine." > DeepMind CEO Demis Hassabis warned that AI investments have shown signs of "bubbling," with some startups' valuations severely detached from product and business fundamentals, and the market may face a correction. However, he firmly believes that Google, with its strong business foundation and technological moat, is capable of withstanding potential turbulence, and revealed that the demand for its latest model Gemini 3 is strong, while emphasizing that the company will continue to focus on the safe and responsible development of AI Google DeepMind CEO Demis Hassabis has issued a warning that the current investment frenzy in the artificial intelligence sector exhibits clear signs of "bubbling," with capital flows increasingly detached from business fundamentals. According to the Financial Times, Hassabis pointed out at the World Economic Forum in Davos that some startups have completed billions of dollars in seed funding without any products or technologies in place, a phenomenon he described as "unsustainable." **The market is not only experiencing irrational exuberance, but certain areas are likely to face corrections in the future.** This statement sharply contrasts with the views of NVIDIA CEO Jensen Huang and Microsoft CEO Satya Nadella, who deny that the industry is over-invested. Despite issuing a warning about the industry bubble, Hassabis emphasized that Google, with its scale and technological moat, is well-positioned to withstand potential market turbulence. He stated clearly, "Even if the bubble bursts, we will be fine," and pointed out that Google has a strong business foundation capable of enhancing productivity through AI capabilities, with demand for the company's latest model, Gemini 3, stronger than ever. ## **Valuation Detachment from Reality and Startup Risks** Hassabis expressed concern over the blind enthusiasm in the current venture capital scene. He noted that investors are eager to flock to startup groups like Thinking Machine Lab, founded by former OpenAI executive Mira Murati. Despite being established for only six months and disclosing almost no details about any products being developed, the company's valuation has reached $10 billion. This phenomenon is seen as a typical case of market overheating. According to the Financial Times, Thinking Machine Lab has recently lost several key employees, raising doubts about its long-term prospects. Additionally, investors are beginning to worry about the billions of dollars being spent to build AI infrastructure, especially those high-leverage debt deals that rely on future technology adoption rates for support. Hassabis believes that **this influx of funds detached from business reality could lead to a market correction in the future.** ## **Google's Moat and Gemini 3** In the face of potential industry reckoning, Hassabis demonstrated confidence in Google's resilience. He stated that AI is "possibly the most transformative technology in history," and Google has rebounded from the difficult period following OpenAI's release of ChatGPT in 2022. According to Hassabis, Google's current AI model performance has surpassed that of its smaller competitors, and it is closing the gap in the number of chatbot users. The parent company Alphabet has benefited from this, with its market capitalization surpassing $4 trillion. Hassabis emphasized that **Google has an impressive business foundation that can achieve higher productivity by adding AI capabilities, which keeps the company safe amid industry turbulence.** ## **Safety Hazards and Hardware Vision** Discussions at Davos also focused on the growing risks of AI. Recently, OpenAI faced lawsuits for its chatbot allegedly inducing young people to commit suicide, while Musk's xAI has been criticized for the Grok chatbot generating pornographic images. Hassabis emphasized the need to focus on safe and responsible AI development, stating that DeepMind will increase its investment in the application of AI in science and medicine. Additionally, Hassabis reiterated Google's long-term vision for smart glasses. Despite Google Glass failing over a decade ago, he believes that a universal digital assistant will be the "killer app" for smart glasses. Google announced last year a partnership with fashion groups like Warby Parker to seek the launch of a new type of glasses that integrate AI. ## **Focus on Research Rather Than Succeeding as CEO** As a key figure in Google's future plans, Hassabis has gained more control and responsibility in its AI business in recent years. However, he denied speculation that he would succeed Sundar Pichai as CEO of Alphabet in the future. Hassabis stated that he is very satisfied with his current work and enjoys being close to the forefront of science and research. He admitted, "There are limited things that can be done in a day, and enough time needs to be set aside for serious thinking." ### Related Stocks - [GGLL.US - Direxion Daily GOOGL Bull 2X Shares](https://longbridge.com/en/quote/GGLL.US.md) - [GOOW.US - Roundhill GOOGL WeeklyPay ETF](https://longbridge.com/en/quote/GOOW.US.md) - [GOOG.US - Alphabet - C](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US - Alphabet](https://longbridge.com/en/quote/GOOGL.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 姚顺宇谷歌首秀，Gemini 新模型刷爆 SOTA：人类仅剩 7 人捍卫碳基编程 | 谷歌推出 Gemini 3 Deep Think 模型，取得 3455 Elo 分数，位列全球第 8，超越以往最高分 2727。该模型在 ARC-AGI-2 基准测试中得分 84.6%，刷新 SOTA，远超 Claude Opus 4.6 | [Link](https://longbridge.com/en/news/275891427.md) | | Alphabet 发行 100 年期英镑债券，科技公司近 30 年来首次 | Alphabet 计划发行百年期英镑债券，支持 AI 投资。这是科技公司近 30 年来首次发行此类长期债券。此次发债融资创纪录，美元债券发行筹资 200 亿美元，超出预期。摩根士丹利预计，Alphabet 将借入 4000 亿美元，推动投资 | [Link](https://longbridge.com/en/news/275357669.md) | | 每千次展示 60 美元！OpenAI 用高价拉开 “AI 广告” 大幕 | 为应对 AI 巨额开支，OpenAI 正式测试广告，CPM60 美元起步、最低投入 20 万美元，定位高端渠道，直接挑战谷歌万亿美元市场，WPP 等顶级代理已率先合作。但转型风险并存：需平衡用户信任，承诺不用私聊数据；对手 Anthropi | [Link](https://longbridge.com/en/news/275993077.md) | | AI 淘金热变成 AI 恐慌潮！华尔街新共识：躲开一切可能被颠覆的公司 | 投资者不再热衷于寻找 AI 赢家，而是急于抛售任何可能被 AI 颠覆的公司股票，这种” 先卖出、再提问” 的恐慌情绪正在从软件行业蔓延至金融服务、财富管理、保险经纪和法律服务等多个领域。宁愿错杀也不愿承担被 AI 颠覆风险的心态正在重塑华尔 | [Link](https://longbridge.com/en/news/275557016.md) | | 春节周重磅前瞻：美联储最爱通胀指标，DeepSeek V4 或发布 | “史上最长” 春节假期开启，A 股及多国市场休市。宏观方面，美联储会议纪要、12 月 PCE 及四季度 GDP 修正值将指引降息路径，日 本举行首相指名选举。AI 领域，首届印度 AI 峰会召开，黄仁勋等出席；国内 DeepSeek V4 | [Link](https://longbridge.com/en/news/275992825.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.