Overview
- In a BBC interview, Pichai said some AI investment looks irrational and warned that no company, including Alphabet, would be protected if a bubble bursts.
- Alphabet is continuing heavy spending, with about $93 billion in 2025 capital expenditures and reported plans for $40 billion in new Texas data centers.
- He likened today’s boom to the dot‑com era, saying excess investment can occur even when a technology proves profoundly important.
- Pichai flagged AI’s power demands, citing estimates of roughly 1.5% of global electricity use last year and urging expanded energy and infrastructure.
- Market caution is building, with reports of Peter Thiel and SoftBank selling Nvidia stakes, Michael Burry disclosing puts on Nvidia and Palantir, and investors watching Nvidia’s earnings this week.