Google CEO Sundar Pichai has issued a stern warning amid the current frenzy surrounding artificial intelligence: if the AI bubble bursts, no company—including Google itself—will be spared. In a candid interview with the BBC, Pichai described today’s AI excitement as an “extraordinary moment,” but added that “elements of irrationality” are at play.

As global markets ride high on AI-fueled valuations and aggressive investment, Pichai urged caution, saying that even Google could face serious headwinds if the hype subsides. “I think no company is going to be immune, including us,” he remarked. While the company believes it can “weather the storm,” he acknowledged that a sharp correction could send shockwaves throughout the entire technology sector.

Despite the risk, Pichai argued that the current surge in investment speaks to a genuine transformation in technology. He insisted that beneath the frothy enthusiasm lies profound innovation—innovation that could reshape industries long term. Still, he was not blind to the dangers: the boom, he said, is marked by a tension between real promise and speculative excess.

Beyond the financial risks, Pichai raised environmental concerns. He revealed that the massive energy demands of training state-of-the-art AI models may hinder Alphabet’s (Google’s parent company) ability to hit its net-zero emissions goals. The company is scaling up computing infrastructure rapidly, but this progress comes with a significant carbon cost.

Pichai’s caution comes as part of a broader chorus of concern among leading technologists. OpenAI CEO Sam Altman was more blunt earlier this year, admitting that the industry may be riding a wave of “investor over‑excitement.” Altman warned that while some will reap enormous gains, others may suffer massive losses. Similarly, Amazon founder Jeff Bezos echoed the sentiment, pointing out that when enthusiasm runs high, nearly every idea gets funded. He suggested that although corrections may come, they might not be entirely negative: “When the dust settles … society benefits from those inventions.”

Pichai also highlighted Alphabet’s commitment to AI despite the risks. Google is reportedly planning to train AI models in the UK, strengthening its presence there and aligning with British ambitions to become a global AI leader. The company said earlier that it would invest £5 billion over two years to expand its AI infrastructure, including new data centers and further investments in its DeepMind lab in London.

Yet for all this ambition, Google’s CEO remains grounded in realism. He believes that even industry giants cannot ride the wave of hype indefinitely without paying a price. As the AI ecosystem grows ever more crowded, Pichai’s warning serves as a sobering reminder: the future may be driven by transformative innovation, but the recklessness of exuberance could put many at risk.

In his own words, Pichai painted a vision of both promise and peril—an AI moment unlike any other, but one that demands clear-eyed discipline. As he put it, the upside is real; the risk, however, is universal.