"Speaking exclusively to BBC News, Sundar Pichai said while the growth of artificial intelligence (AI) investment had been an "extraordinary moment", there was some "irrationality" in the current AI boom. It comes amid fears in Silicon Valley and beyond of a bubble as the value of AI tech companies has soared in recent months and companies spend big on the burgeoning industry."
"Asked whether Google would be immune to the impact of the AI bubble bursting, Mr Pichai said the tech giant could weather that potential storm, but also issued a warning. "I think no company is going to be immune, including us," he said. In a wide-ranging exclusive interview at Google's California headquarters, he also addressed energy needs, slowing down climate targets, UK investment, the accuracy of his AI models, and the effect of the AI revolution on jobs."
"Alphabet shares have doubled in value in seven months to $3.5tn (2.7tn) as markets have grown more confident in the search giant's ability to fend off the threat from ChatGPT owner OpenAI. A particular focus is Alphabet's development of specialised superchips for AI that compete with Nvidia, run by Jensen Huang, which recently reached a world first $5tn valuation."
AI investment growth has created an extraordinary moment alongside signs of irrational exuberance and fears of a market bubble. Rapid valuation increases have seen Alphabet's market value double to $3.5tn while Nvidia reached $5tn as demand for specialised AI superchips surged. Analysts note a complex web of roughly $1.4tn of deals around OpenAI despite its currently minimal revenues. Energy requirements, slowing climate targets, UK investment, AI model accuracy, and job impacts are emerging pressures as companies spend heavily on AI. The industry faces intensified scrutiny over sustainability and potential systemic risk if investor sentiment reverses.
Read at www.bbc.com
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