--- title: "Google DeepMind Says the Next Stage of AI May Already Be Starting, GOOGL Shares Rise" type: "News" locale: "en" url: "https://longbridge.com/en/news/294725032.md" description: "Google (GOOGL) shares rose after DeepMind executive Jasjeet Sekhon suggested AI is entering a 'recursive self-improvement' phase, where models help build smarter versions of themselves. Despite massive industry spending—projected to exceed $700 billion by 2026—and warnings about an 'AI air pocket' where revenue lags behind investment, Sekhon remains optimistic. Wall Street maintains a Strong Buy consensus on GOOGL with an average price target of $427.81." datetime: "2026-08-03T18:08:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294725032.md) - [en](https://longbridge.com/en/news/294725032.md) - [zh-HK](https://longbridge.com/zh-HK/news/294725032.md) --- # Google DeepMind Says the Next Stage of AI May Already Be Starting, GOOGL Shares Rise Shares of Google (GOOGL) are rising today after DeepMind executive Jasjeet Sekhon said that the huge AI spending by tech giants Google, Amazon (AMZN), Microsoft (MSFT), and Meta Platforms (META) is preparing the way for a much more advanced type of artificial intelligence. This next stage, which is often called recursive self-improvement (RSI), is when an AI system could help build a smarter version of itself. In his view, there are already early signs that AI can help researchers create better models and improve the tools used to train them. ### Claim 55% Off TipRanks AMZO: built for a short position on AMZN To explain the idea, Sekhon compared AI to the steam engine. Once steam engines existed, people could use them to build better steam engines. In the same way, today's AI models may eventually help engineers design more powerful AI systems. ## **Revenue Can't Cover Expenses** However, Sekhon warned that today's AI revenue is still not large enough to cover the enormous amount of money being invested. According to _The Information_, he said that current AI sales do not yet support the level of spending happening across the industry. Sekhon also warned about a possible "AI air pocket," which means that companies could keep spending heavily while the expected revenue takes longer to arrive. Indeed, the scale of the spending is already enormous. AI infrastructure investment is expected to top $700 billion in 2026, after more than $400 billion was spent in 2025. This has already caused some investors to worry about how quickly these projects will pay off. Nevertheless, the biggest cloud companies have said that spending could rise again in 2027. For instance, Google recently increased its 2026 capital spending forecast to between $195 billion and $205 billion, up from its previous estimate of $180 billion to $190 billion. Similarly, Amazon now expects to spend $220 billion on capital expenditures in 2026, up from its previous forecast of $200 billion. Even so, Sekhon believes that it would be unwise to bet against the technology. ## **Are GOOGL Shares a Good Buy?** Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 29 Buys and five Holds assigned in the past three months. Furthermore, the average GOOGL price target of $427.81 per share implies 14.1% upside potential. (See GOOGL Stock Forecast). ### Related Stocks - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOL.US](https://longbridge.com/en/quote/GOOL.US.md) - [GGLS.US](https://longbridge.com/en/quote/GGLS.US.md) - [GOOW.US](https://longbridge.com/en/quote/GOOW.US.md) - [GGLL.US](https://longbridge.com/en/quote/GGLL.US.md) - [GOOY.US](https://longbridge.com/en/quote/GOOY.US.md) - [GOU.US](https://longbridge.com/en/quote/GOU.US.md) - [GOOX.US](https://longbridge.com/en/quote/GOOX.US.md) - [GOOP.US](https://longbridge.com/en/quote/GOOP.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) ## Related News & Research - [Alphabet Inc. $GOOGL is Saturna Capital Corp's 6th Largest Position](https://longbridge.com/en/news/294578714.md) - [Gemini agent digs a 13-year-old sandbox escape out of Chrome's code](https://longbridge.com/en/news/294501470.md) - [Google nixes its Earth AI feature one day after launch, amid criticism it would spread misinformation](https://longbridge.com/en/news/294549600.md) - [French soccer club Paris Saint Germain partners with Google on AI](https://longbridge.com/en/news/294668977.md) - [LIVE MARKETS-AI's not that fun and easy. Just look at the SOX](https://longbridge.com/en/news/294098193.md)