Sundar Pichai, the head of Google, has expressed concerns about the current surge in artificial intelligence, suggesting that some of the enthusiasm driving this boom might be irrational. He cautioned that if this AI bubble were to burst, no company would be immune from its fallout.

Google, under Pichai’s leadership, has committed a staggering $93 billion to capital expenditures this year, focusing heavily on advancing AI technology. This substantial investment comes amid a heated debate on Wall Street, where opinions are divided on whether AI firms are currently overvalued.

In an interview with the BBC published on Tuesday, Pichai noted, “Given the potential of this technology, the excitement is very rational. However, it’s also true that during these investment cycles, the industry often overshoots.” He acknowledged both the promise and the perils inherent in this rapid expansion.

Drawing a comparison to past tech trends, the Google CEO likened today’s AI market conditions to the internet boom of the late 1990s. During that period, the valuations of tech companies skyrocketed, only to plummet when the dot-com bubble burst in 2000.

Reflecting on this historical parallel, Pichai remarked, “Looking back at the internet, it’s evident there was excessive investment, yet we all recognize the internet’s profound impact. I anticipate AI will follow a similar trajectory. Therefore, while the excitement is justified, there are certainly irrational elements at play in this current moment.”

When asked how Google could handle the potential bursting of the AI bubble, Pichai said the company was prepared but admitted, “no company is going to be immune, including us.”

Pichai also spoke glowingly about AI’s potential to reshape the economy for the better – even as he acknowledged it was likely to cause labor upheaval including job losses as businesses adopt AI technology.

Tech stocks have been especially volatile during a recent downturn in US markets.

The tech-heavy Nasdaq composite was trading about 1% lower on Tuesday, while the Dow Jones Industry Average was on pace for its fourth-straight losing session while shedding about 300 points, or roughly 0.7%.

So far, Google has remained resilient, with shares surging about 50% since the start of the year.

Signs of panic emerged this week following revelations that billionaire tech investor Peter Thiel had dumped his entire stake in key chip maker Nvidia.

That came just days after Japanese investment giant Softbank sold off all of its Nvidia holdings.

Nvidia’s stock is seen as key bellwether because other tech giants rely heavily on its advanced AI computer chips to power their models.

Nvidia shares have fallen more than 9% since the start of the month.

Investors will be watching closely when the company reports third-quarter earnings on Wednesday.