On Tuesday, Alphabet CEO Sundar Pichai warned of “irrationality” in the AI market, telling the BBC in an interview, “I think no company is going to be immune, including us.” His comments arrive as scrutiny over the state of the AI market has reached new heights, with Alphabet shares doubling in value over seven months to reach a $3.5 trillion market capitalization.

Speaking exclusively to the BBC at Google’s California headquarters, Pichai acknowledged that while AI investment growth is at an “extraordinary moment,” the industry can “overshoot” in investment cycles, as we’re seeing now. He drew comparisons to the late 1990s Internet boom, which saw early Internet company valuations surge before collapsing in 2000, leading to bankruptcies and job losses.

“We can look back at the Internet right now. There was clearly a lot of excess investment, but none of us would question whether the Internet was profound,” Pichai said. “I expect AI to be the same. So I think it’s both rational and there are elements of irrationality through a moment like this.”

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