Overview
- In a BBC interview, Alphabet CEO Sundar Pichai said the AI surge includes elements of “irrationality” and warned that “no company is going to be immune, including us” if a bubble pops.
- Market jitters have grown as AI leaders reach eye‑watering valuations—Alphabet about $3.5 trillion, Nvidia around $5 trillion, and OpenAI reportedly near $500 billion—with Nvidia’s results framed as a key test.
- Caution signals are building, with SoftBank and Peter Thiel exiting Nvidia holdings and Michael Burry disclosing put positions against Nvidia and Palantir.
- Alphabet is continuing to invest heavily, committing £5 billion to UK AI infrastructure and research and planning over time to train some of its models in Britain.
- Pichai highlighted AI’s power demands—about 1.5% of global electricity—and acknowledged slippage on Alphabet’s climate targets, as officials and analysts debate whether current gains reflect a bubble or sustainable earnings.