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Sundar Pichai warned that no company, including Alphabet, will be immune if the AI investment bubble bursts, citing 'irrationality' in the current boom.

How has Bitcoin been affected by AI bubble fears?

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Nvidia has recently reached a significant valuation of $5 trillion, reflecting the intense investment and focus on AI technology.

Home / Business and Economy / AI Bubble Warning: Google Boss Fears Market Irrationality

AI Bubble Warning: Google Boss Fears Market Irrationality

18 Nov

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Summary

Alphabet CEO warns no company is immune to a potential AI bubble burst.
Nvidia's valuation reached $5 trillion amid intense AI investment.
Bitcoin has lost all its year-to-date gains due to market nervousness.

AI Bubble Warning: Google Boss Fears Market Irrationality

Sundar Pichai, the chief executive of Alphabet, has issued a stark warning regarding the burgeoning artificial intelligence sector, stating that no company will be exempt from repercussions if the current AI investment bubble deflates. Pichai described the intense market activity as an "extraordinary moment" with elements of "irrationality," drawing parallels to the dot-com bubble where significant overinvestment occurred despite the internet's profound impact.

Alphabet, whose shares have more than doubled to $3.5 trillion in value over the past seven months, is actively developing specialized AI chips to compete with giants like Nvidia, which recently achieved a $5 trillion valuation. However, concerns are mounting over potentially overvalued AI firms and a complex web of significant deals, particularly surrounding OpenAI. Even tech titans like Peter Thiel and Softbank have divested stakes in key companies like Nvidia.