In an interview with the BBC, Pichai also commented that Google, despite its resilience, cannot be completely insulated from the consequences of a potential AI bubble collapse. "I think no company will be safe, including ours," he said.
He also emphasized that the tech giant is in a more advantageous position due to its model, which includes a full range of technologies—from chips to data related to YouTube and innovative scientific developments.
Discussing the current state of the AI market, Pichai noted that Alphabet's stock price has doubled in seven months, reaching $3.5 trillion (£2.7 trillion), indicating growing investor confidence in the company's ability to compete with OpenAI, the owner of ChatGPT.
Particular attention is being paid to the development of specialized superchips for AI, which Alphabet is creating to compete with Nvidia, recently valued at $5 trillion.
However, some analysts express doubts about the complex $1.4 trillion deals surrounding OpenAI, expecting its revenues this year to be less than one-thousandth of the planned investments.
Pichai, commenting on the situation, mentioned "irrational exuberance," which was referred to by former Federal Reserve Chairman Alan Greenspan in 1996 when he warned of potential market risks during the dot-com boom. He noted that the industry may "overestimate" its capabilities in similar investment cycles.
"We can remember the past with the Internet. There were many excessive investments, but no one doubted its significance," he added.
Pichai also emphasized that AI will evolve and transform many professions, offering new opportunities but requiring people to adapt to new conditions. "Those who can leverage these technologies will succeed," he concluded.
Regarding sustainability issues, Pichai noted that the growing energy demands of AI could slow the company's progress toward its climate goals. Alphabet aims to achieve net-zero emissions by 2030, but this requires investment in new energy sources and expanding infrastructure. "This will impact the speed at which we hoped to make progress," he said.
Alphabet also plans to expand its investments in the UK, allocating £5 billion for AI and infrastructure development over the next two years. Pichai added that the company will advance its research in London, including the DeepMind project.
He expressed hope that the UK government would support Google's initiatives to train AI models locally, allowing the country to rank third after the US and China in the field of AI.
"We intend to invest significant funds in the UK," he summarized.
Pichai also highlighted the importance of energy supply for the further development of AI, pointing out that its demands accounted for 1.5% of global electricity consumption last year. He called for the need to develop new energy sources and improve energy infrastructure to avoid limiting an economy based on new technologies.
