Google CEO tries to dispel AI bubble fears, backs long-term bets

Amid mounting global concerns over a potential artificial intelligence (AI) bubble, Sundar Pichai has defended the scale of investment in the technology, likening current spending to historic infrastructure expansions such as railroads and highways that laid the groundwork for sustained economic growth.

Speaking at an interactive session on the sidelines of the AI Summit in New Delhi yesterday (18 February), the chief executive of Google urged corporate leaders to take a long-term view when confronted with boardroom scepticism over AI returns.

Describing the present moment as "extraordinary" and "transformational," Pichai said the technological shift under way could rival the Industrial Revolution "but 10 times faster and 10 times larger."

Drawing parallels with large-scale infrastructure bets in the United States, including railroad expansion and the national highway network, he argued that such leveraged investments historically unlocked massive long-term value. AI, he said, should be viewed through a similar prism.

"At Google, we're fortunate that we've been focused on this technology for over a decade," Pichai said, noting that businesses spanning search, YouTube, cloud and emerging ventures are benefiting from underlying AI advances.

He cited cloud as an example, saying the unit's order backlog doubled year-on-year to $240 million in the past year, reflecting robust demand and future revenue visibility.

"We are investing to meet that demand," he said, adding that the scale of opportunity justifies the current pace of capital expenditure.

The remarks come at a time when the global tech industry is grappling with a debate over soaring AI-related spending. Alphabet Inc., Google's parent, has announced plans to commit $185 billion this year, intensifying concerns among some investors about overheating in the sector.

Pichai, however, said no technology had made him "dream bigger than AI," describing it as being on the cusp of "hyper progress" that could drive new scientific discoveries and enable emerging economies to leapfrog stages of development.

According to him, the true measure of AI's success will be how widely it diffuses across society, with India positioned to play a pivotal role.

Reflecting on the country's progress over the past decade, Pichai said India is uniquely placed not only as a vast user base but also as a builder of cutting-edge solutions and a rule-shaper influencing global discourse.

"We believe India is going to have an extraordinary trajectory with AI and we want to be a partner," he said, highlighting initiatives including subsea cable investments, infrastructure spending and the development of an AI hub in Visakhapatnam.

Meanwhile, Dario Amodei, chief executive of Anthropic, said India has a central role to play in addressing challenges surrounding autonomous AI behaviour, potential misuse and economic displacement.

Speaking at the India AI Impact Summit 2026, Amodei noted that India has historically set standards for the Global South and helped diffuse technological and humanitarian benefits across developing nations.