According to Inc, Google CEO Sundar Pichai told the BBC this week that it’s possible we’re in an AI bubble, comparing the current moment to the early internet boom. He said Google’s AI spending has skyrocketed from less than $30 billion annually four years ago to over $90 billion this year. Pichai estimated that all companies combined are investing well over $1 trillion toward building AI infrastructure. He warned that no company, including Google, would be immune if the bubble bursts. Meanwhile, Meta CEO Mark Zuckerberg also acknowledged the bubble possibility but argued the bigger risk is building too slowly. OpenAI CEO Sam Altman compared the current AI excitement to the 1990s internet frenzy, calling it smart people getting overexcited about “a kernel of truth.”
Everyone’s suddenly bubble-curious
It’s fascinating that we’re now hearing this from the very CEOs whose companies are driving the AI gold rush. Pichai basically admitted what many investors have been whispering: this feels a lot like the dot-com era. But here’s the thing – he’s still spending $90 billion this year. That’s the real story. When the guy steering one of the biggest ships says “we might be in a bubble” while simultaneously tripling his investment, you know we’re in a weird moment.
The trillion dollar question
Over $1 trillion in combined industry investment? That’s an absolutely staggering number. And Pichai’s right – no company would be safe if this thing pops. But look at the difference in tone between these tech leaders. Zuckerberg says the risk is higher on the other side – meaning if you don’t spend enough, you’ll miss out. Altman calls it “overexcited about a kernel of truth.” They’re all acknowledging the bubble possibility while racing to pour gasoline on the fire.
Who actually survives a burst?
The BBC’s AI correspondent made an interesting point about Google being “very insulated” compared to companies like OpenAI. And he’s probably right – Google has search revenue, cloud, YouTube, and dozens of other cash cows. But $90 billion is still $90 billion. That’s not pocket change, even for Alphabet. If the AI bubble does burst, the companies with diversified revenue streams and actual profitable businesses will weather it better than those betting everything on AI becoming the next iPhone moment overnight.
The internet comparison is telling
Pichai and Altman both reached for the same analogy: the early internet. And they’re not wrong – remember Pets.com? Webvan? The dot-com crash wiped out countless companies, but the internet itself obviously transformed everything. The question isn’t whether AI is important – it clearly is. The question is whether we’re building sustainable businesses or just burning cash on hype. When even the CEOs spending billions are warning about irrationality, maybe we should listen. As one analysis put it, this feels like everyone seeing the cliff ahead but deciding to accelerate anyway.
