Google CEO Sundar Pichai downplayed concerns about a market overreaction during the company’s recent earnings call. In response to worries triggered by Anthropic’s new AI plugins, Pichai said the panic was exaggerated hysteria, stressing that AI is simply a supportive tool, just as it has enhanced Google products like Search and YouTube. He added that businesses adopting the technology now will continue to find opportunities.
His comments come as software stocks worldwide nurse heavy losses. Anthropic's Claude Cowork plugins, wiped out roughly $285 billion from software, legal tech and financial services stocks in a single session. Analysts dubbed it a 'SaaSpocalypse'. But in Pichai's view, the scramble is overdone.
Nvidia CEO Jensen Huang echoed Pichai’s view, questioning the market’s response to AI developments. Speaking at a Cisco event, Huang described the selloff as “the most illogical thing in the world.” He argued that AI will enhance existing software tools rather than replace them.
“Would you use a screwdriver or invent a new screwdriver?” he asked, adding that Nvidia uses such tools to free employees for more complex work, such as designing chips and computer systems. Meta’s CFO, Susan Li, also highlighted AI’s impact on productivity, saying AI-powered coding tools have increased output per engineer by 30% year-on-year, with power users reporting an 80% boost.
Anthropic’s growth underscores the market’s focus on AI. Claude Code reportedly reached $1 billion in annualized recurring revenue by November, just months after launch. The company is said to be raising $20 billion at a $350 billion valuation. Jefferies analysts noted that OpenAI is losing corporate market share to Claude, with enterprises now accounting for 80% of Anthropic’s business.
Pichai highlighted Alphabet’s strong quarter, with annual revenues crossing $400 billion for the first time. Search grew 17%, YouTube topped $60 billion in annual revenue, and Cloud revenue jumped 48% to a $70 billion run rate, driven by AI demand. Backlog rose 55% to $240 billion.
He added that Alphabet now has over 325 million paid subscriptions, more than eight million Gemini Enterprise seats sold, and 750 million monthly active users on the Gemini app, with engagement rising since the launch of Gemini 3.
