Google CEO Warns AI Bubble Burst Would Hit All Companies

Published 7 hours ago

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Above: Alphabet Inc. CEO Sundar Pichai at the White House in Washington, DC, on Sept. 4, 2025. Image credit: Jim Lo Scalzo/EPA/Bloomberg/Getty Images

The Spin

Techno-skeptic narrative

The AI bubble is real and dangerous, with interconnected tech giants creating a house of cards that could trigger economic collapse. Major industry leaders like Goldman Sachs CEO and Amazon's Bezos are warning of massive capital losses, while 95% of organizations show zero ROI despite spending billions. The concentration of deals among a few players means when AI promises fall short, the contagion will devastate markets worse than 2008.

The Conversation Fortune

Techno-optimist narrative

Big Tech's massive AI investments prove this isn't a bubble but a fundamental infrastructure transformation backed by real revenue and customer demand. Companies like Google, Microsoft, and Amazon are posting record earnings while investing over $300 billion in AI infrastructure that's already monetizing. Unlike past bubbles built on speculation, these investments are generating actual returns with demand exceeding supply across services.

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