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No company is “immune” if AI bubble bursts amid soaring valuations

Mohammed Fahad
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No company is “immune” if AI bubble bursts amid soaring valuations
  • Warns that Alphabet’s net-zero environmental targets would face delays as Google scales up its computing resources to sustain AI growth.

Alphabet Chief Executive Sundar Pichai cautioned that no company—including Google—would be “immune” if the artificial intelligence (AI) investment boom collapses, as market exuberance pushes sector valuations to dizzying heights and stirs fears of a potential bubble.

In an interview with the BBC published on Tuesday, Pichai described the ongoing AI investment wave as an “extraordinary moment” but acknowledged “elements of irrationality” reminiscent of the 1990s tech bubble. “I think no company is going to be immune, including us,” Pichai said, when pressed on how Google might weather an industry downturn.

Analysts have increasingly debated whether current AI valuations are sustainable, and Pichai’s comments add momentum to a growing chorus warning of “irrational exuberance” in the sector.

Global ambitions

Alphabet shares have soared approximately 46 per cent year-to-date, reflecting investor confidence in Google’s ability to remain competitive alongside leaders like OpenAI—the maker of ChatGPT. Meanwhile, US market concerns over lofty valuations are beginning to ripple across broader indices, and British policymakers have also warned of emerging bubble risks.

In September, Alphabet announced a commitment of £5 billion over two years for UK AI infrastructure and research, including a new data centre and continued investment in DeepMind, its London-based artificial intelligence lab.

Pichai said Google will begin training AI models within the UK, a move welcomed by Prime Minister Keir Starmer as bolstering Britain’s ambition to become the world’s third AI “superpower,” trailing only the US and China.

Pichai also flagged the “immense” energy requirements tied to AI model training, warning that Alphabet’s net-zero environmental targets would face delays as Google scales up its computing resources to sustain AI growth.

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PhysicsWallah soars 45% on trading debut, valued at $5.1b

Ana Mary Joseph
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PhysicsWallah soars 45% on trading debut, valued at $5.1b

Shares of PhysicsWallah soared as much as 45 per cent in their trading debut on Tuesday, valuing the Indian edtech company at $5.1 billion and highlighting robust investor enthusiasm for fresh growth in the sector.

PhysicsWallah’s shares opened at Rs145 on the National Stock Exchange of India, jumping 33 per cent above the IPO issue price of Rs109 and climbing to Rs158.38 as of 10:02 a.m. IST, a surge of 45 per cent. The market debut exceeded analyst expectations, even as broader Indian markets edged lower in anticipation of key US economic data.

PhysicsWallah is the first major edtech company to go public following a turbulent period for the industry. Competitor Byju’s—once valued at $22 billion—has entered insolvency proceedings, while other leading players such as Unacademy have been forced to grapple with layoffs and financial pressures.

Physicswallah CEO Alakh Pandey says that the listing is significant milestone in company’s journey. However, the bigger battle is to bring more and more talented students across India in the learning ambit and make education a true universal feature.

Its key competitors include Byju’s, Unacademy, Vedantu, and Gradeup. 

PhysicsWallah’s initial public offering targeted a valuation of $3.19 billion with a $393 million IPO, but institutional demand drove total bids to $414 million. The successful listing aligns the company with other recent high-profile debuts including online brokerage Groww and payment firm Pine Labs, reflecting renewed investor interest in India’s technology sector.

India’s IPO market is poised for a record fundraising year in 2025, with over 300 companies raising approximately $16.55 billion by early November. PhysicsWallah’s strong listing further underscores India’s position as a hub for high-growth tech startups seeking capital on public markets.

AI insiders predict Perplexity and OpenAI are “most likely to fail”

Naushad K. Cherrayil
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AI insiders predict Perplexity and OpenAI are “most likely to fail”
  • Investor sentiment shifts as legal scrutiny and financial headwinds challenge top AI startups.
  • Anthropic now holds a 32% share—outpacing OpenAI’s 25%, according to Menlo Ventures.

At last week’s Cerebral Valley Summit in San Francisco, more than 300 AI founders and investors named Perplexity as the billion-dollar startup most likely to fail, with industry heavyweight OpenAI coming in a close second.

The results, gathered via an anonymous survey by independent journalist Alex Heath, mark a striking change in Silicon Valley’s view of artificial intelligence powerhouses.

Perplexity, long touted for its meteoric valuation—skyrocketing from $14 billion to nearly $50 billion in recent months—has become a focal point for industry scepticism. Analysts warn of a dot-com-era-style frenzy, and the company faces mounting legal turmoil.

Amazon sued Perplexity in November to block its Comet browser from making purchases on users’ behalf, while Reddit and several major Japanese newspapers—including Yomiuri Shimbun, Asahi Shimbun, and Nikkei—have filed copyright infringement claims. The BBC is also considering legal action over alleged unauthorised scraping.

Industry observers have criticised Perplexity’s web-scraping tactics, with Cloudflare’s CEO comparing its behaviour to North Korean hackers. Reports indicate the company routinely ignores website protocols designed to limit scraping activities.

When asked about the Summit’s survey results, Perplexity’s Jesse Dwyer dismissed them as the product of a “judgmental valley conference.”

Investor momentum shifts toward Anthropic

Perhaps most notable at the Summit was the shifting investor sentiment toward Anthropic, which attendees named the top pick for future investment over OpenAI. Despite a consensus that OpenAI will likely lead next year’s global LMArena leaderboard for advanced AI models, Anthropic’s growth has stolen the spotlight.

Anthropic’s revenue vaulted from $87 million at the start of 2024 to more than $5 billion by August 2025. The firm completed a $13 billion Series F round in September, bringing its valuation to $183 billion.

Within the crowded enterprise AI market, Anthropic now holds a 32 per cent share—outpacing OpenAI’s 25 per cent, according to Menlo Ventures. Its developer toolkit, Claude Code, launched in May and already generates over $500 million in annualised revenue, with business clients growing from fewer than 1,000 two years ago to over 300,000 today.

Financial woes shadow OpenAI

OpenAI’s second-place finish in the “most likely to fail” poll surprised some, given its market dominance. The pessimism, however, may be rooted in financial concerns. While OpenAI expects to generate $13 billion in revenue this year, projected losses could reach $9 billion.

Internal forecasts suggest operating losses may balloon to $74 billion by 2028, with the company’s gargantuan infrastructure spend projected to top $1 trillion over the next decade.

Moreover, OpenAI’s conversion challenges remain acute: 95 per cent of ChatGPT’s 800 million users use the service for free. Unlike Anthropic, which aims to break even by 2028, OpenAI is not expected to do so until the decade’s end.

Other rising startups flagged in the Summit’s “failure poll” included Cursor, Figure, Harvey, Mercor, Mistral, and Thinking Machines. Yet optimism endures among AI bulls: Participants predicted Nvidia could reach a $6 trillion market capitalisation by the end of 2026.

Databricks in talks for new funding round at $130b valuation

TCN Bureau
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Databricks in talks for new funding round at $130b valuation
  • Intends to use new funding to accelerate its AI strategy, expand its product suite, launch a new category of operational databases, and pursue further AI-related acquisitions and research.

Data analytics and artificial intelligence leader Databricks is in discussions to raise fresh capital at a valuation reportedly exceeding $130 billion, according to a report by The Information, citing sources familiar with the talks.

This would represent a 30 per cent higher than its last financing round two months ago at a $100 billion valuation.

The company, which declined to comment on the funding discussions, has not yet signed a formal term sheet with any investors, according to the report.

Surging demand

Founded in 2013, Databricks provides platforms for data integration, analysis, and AI application building, serving approximately 15,000 customers globally—including major firms such as Block, Shell, and Rivian. Databricks is widely regarded as an IPO candidate and has attracted significant investor interest in recent quarters.

In September, the San Francisco-based firm revealed it was on track to reach $4 billion in annualised revenue, fueled by surging demand for its AI-driven offerings. Databricks intends to use new funding to accelerate its AI strategy, expand its product suite, launch a new category of operational databases, and pursue further AI-related acquisitions and research.

The reported fundraising talks highlight Databricks’ continued momentum as it seeks to consolidate its role as a dominant force in the global AI and data analytics industry.

Civil aviation contributes about 18% to UAE’s GDP

Ana Mary Joseph
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Civil aviation contributes about 18% to UAE’s GDP

The Dubai Airshow has cemented its status as a premier global platform for advancing trends and innovations in aviation, space, and defence, underscored by the remarks of Abdulla Bin Touq Al Marri, UAE Minister of Economy and Tourism and Chairman of the General Civil Aviation Authority (GCAA).

Addressing industry leaders at the 19th edition of the Dubai Airshow—held under the theme “The Future Starts Here”—Bin Touq emphasised the sector’s pivotal role in the nation’s economy.

“Civil aviation is a cornerstone of the UAE’s future economic growth,” Bin Touq said. He highlighted that the sector currently accounts for about 18 per cent of the UAE’s GDP, driven by robust contributions from national airlines, airports, logistics, and tourism.

UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan shakes hands with His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai at the 19th edition of the Dubai Airshow, currently taking place at Dubai World Central under the theme ‘The Future is Here’. The event runs until 21st November.

Ongoing investments in advanced technologies—from electric aircraft to sustainable systems and advanced air mobility—are expected to further spur industry growth and global competitiveness.

This year’s Airshow gathers over 1,500 exhibitors from 115 countries and aims to promote international collaboration and knowledge-sharing to support a more innovative and resilient aviation sector.

A strategic arena

Saif Mohammed Al Suwaidi, Director General of the GCAA, noted that the event serves as a strategic arena for forging new cooperation agreements and fostering partnerships focused on safety, innovation, advanced air mobility, and sustainability.

The UAE’s leadership in international aviation, particularly within bodies like the International Civil Aviation Organisation (ICAO), remains central to promoting global green aviation and best regulatory practices.

The GCAA’s agenda at the Airshow includes signing international agreements in civil aviation and air navigation, as well as hosting bilateral meetings with delegations and companies to discuss future partnership opportunities.

The Authority’s pavilion showcases projects on human capital development, air accident investigation, and the adoption of advanced technological solutions—all core to the UAE’s ambition to enhance its global aviation ecosystem.

Rostec showcases advanced defence technologies at Dubai Airshow

Ana Mary Joseph
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Rostec showcases advanced defence technologies at Dubai Airshow
  • Rosoboronexport, a Rostec subsidiary, has secured over 30,000 contracts totaling more than $230b, with a record $60b current order book.

Rostec State Corporation, Russia’s leading defence and aerospace holding, spotlights a broad array of advanced military and civilian technologies at this year’s Dubai Airshow, with CEO Sergey Chemezov emphasising the event’s significance as a premier platform for international engagement and innovation.

“This exhibition offers an unparalleled opportunity to present Russian advancements to a global audience of specialists and decision-makers,” Chemezov said. He highlighted the successful foreign debut of the MC-21 passenger aircraft in Dubai, noting its transition to exclusive Russian production as it enters large-scale manufacturing.

Technological premieres and live demonstrations

At the 2025 Airshow, Rostec is unveiling several new systems:

  • Upgraded Yak-130 jet trainer and combat aircraft
  • Ansat light multipurpose helicopter with VK-650 engines
  • The fifth-generation Su-57 fighter jet, which Chemezov described as battle-proven in stealth and firepower, will perform aerial demonstrations led by renowned test pilot Sergey Bogdan.

Additional displays include the Ka-52 attack helicopter, the latest Il-76 heavy transport, the Ka-32 firefighting helicopter, and the Pantsir-SMD-E air defense system. The Ka-52 and Russian Knights aerobatic team—flying Su-30 and Su-35 fighters—will feature in aerial displays, underscoring the operational capabilities of Russian hardware.

International exports and partnerships

Chemezov noted that exporting advanced Russian technologies is pivotal to Russia’s economy and global standing. Since its founding, Rosoboronexport (a Rostec subsidiary) has secured over 30,000 contracts totaling more than $230 billion, with a record $60 billion current order book. Russian products are now fielded in over 120 countries.

The Middle East remains a key market, accounting for almost half of Rosoboronexport’s annual contracts. Regional clients seek Russian air defense systems, aircraft, helicopters, armoured vehicles, UAVs, and simulators. Chemezov underscored the evolution of cooperation toward tech transfer and establishing local production facilities.

Real-world testing

Stressing the reliability and operational efficiency of Russian systems, Chemezov stated, “Our equipment contains no hidden backdoors and cannot be remotely disabled—a crucial assurance for partners.”

He emphasised that Russian solutions are validated in actual combat, not just laboratory tests, which is particularly valued by Middle Eastern clients.

The upgraded Pantsir-SMD-E, adapted for combating UAV threats with 48 mini-missiles, exemplifies this combat-oriented innovation. Russian defense hardware such as Pantsir, Kornet, Solntsepyok, and a range of armored vehicles are consistently praised in the region for their effectiveness and adaptability.

Chemezov concluded by reaffirming Rostec’s long-term strategy to maintain Russia’s position as the world’s second-largest arms exporter and to meet growing demand with robust production and innovative technology.

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