No company is immune if the AI bubble bursts, Google boss says

Global stock markets tumbled as one of the biggest tech bosses warned 'no company is going to be immune' if the artificial intelligence bubble bursts.

Sundar Pichai, chief executive of Google owner Alphabet, acknowledged there was some 'irrationality' in the current boom.

He told the BBC the growth of the AI sector across financial markets had been an 'extraordinary moment' but admitted even he will not be immune to the impact of the bubble bursting.

Mr Pichai warned the tech sector can 'overshoot' in investment cycles such as this.

The FTSE 100 slumped by 123 points, or 1.3 per cent, on Tuesday wiping £30 billion off its value, in the fourth day of losses for the index of leading UK shares. Among the biggest losers were crypto investors. 

They have seen the value of Bitcoin slump to levels seen at the end of last year, wiping out a rally that saw it hit a record high last month.

More than $1 trillion has been erased from the value of all cryptocurrencies over the past six weeks, analysts said.

It follows growing warnings over recent weeks that the surge in US tech share prices linked to the AI revolution had been overdone.

JP Morgan vice-chairman Daniel Pinto told a Bloomberg conference that AI stocks were overvalued and due for a 'correction'. 

And the Bank of England has recently drawn comparisons between the present situation and the so-called 'dotcom' crash when the mania for early internet stocks came to a shuddering halt 25 years ago.

The International Monetary Fund has issued a similar warning. Axel Rudolph, senior technical analyst at investing platform IG, said a stock market and cryptocurrency 'rout' was 'in full swing'.

Victoria Scholar, head of investment at Interactive Investor, confirmed there was a 'sea of red' across global stock markets. 

She said: 'Fears of an AI bubble and concerns about the market's heavy dependence on a handful of tech giants have caused investors to dial back their exposure.

'There's a general sense of nervousness that has captured the market mood lately.'

Anxiety is building this week over two key events that could either confirm their worst fears or allay market worries.

Tonight marks a critical moment as investors review computer-chip maker Nvidia's quarterly results to determine if its massive success in the AI sector creates enough profit and accelerated growth to keep backing it.

And a report about the US job market is due to be released tomorrow, inciting global fear about what may happen in the markets if tariffs are increased.