--- title: "Google DeepMind executives warn: AI revenue cannot support $700 billion in capital expenditure, but RSI will disrupt everything" type: "News" locale: "en" url: "https://longbridge.com/en/news/294763447.md" description: "Google DeepMind executive Jasjit Sihota warned that current AI revenues are insufficient to support massive capital expenditures of up to $700 billion, and the industry may face a \"pocket of air\" gap. However, he emphasized that the prototype of AI's \"recursive self-improvement\" (RSI) has emerged, and being bearish on the technological outlook is unwise, comparing this construction scale to grand projects like the Apollo program" datetime: "2026-08-04T03:23:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294763447.md) - [en](https://longbridge.com/en/news/294763447.md) - [zh-HK](https://longbridge.com/zh-HK/news/294763447.md) --- # Google DeepMind executives warn: AI revenue cannot support $700 billion in capital expenditure, but RSI will disrupt everything According to the Zhitong Finance APP, DeepMind executive Jagjit Sethi stated that the massive investments in artificial intelligence-related capital expenditures by the technology industry are a prelude to the next phase of AI. The next phase of AI is referred to as "Recursive Self-Improvement" (RSI), which essentially means that AI can automatically create better versions of itself. For years, this concept has been viewed as part of Artificial General Intelligence (AGI), but the technology industry, especially the corporate sector, has begun to adopt the term RSI in recent weeks. Sethi noted that the revenue from AI "currently cannot sustain the capital expenditures we are undertaking." However, he added that being bearish on the current and future technologies of the tech industry "seems unwise," pointing out that the early signs of RSI are already emerging. He further stated that this should not come as a surprise, as "the steam engine was originally used to create the next generation of steam engines." Nevertheless, Sethi, who joined Google from Bridgewater Associates in April this year, did point out that there may be an "AI air pocket," where expenditures have occurred but revenues have not yet materialized. He compared the anticipated construction scale, which is expected to exceed $400 billion in spending by 2025 and potentially surpass $700 billion in 2026, to the Apollo moon landing program, the Manhattan Project, and the scale of internet construction in the 1960s. Major hyperscale companies, including Google, Amazon (AMZN.US), Microsoft (MSFT.US), and Meta Platforms (META.US), have repeatedly stated that they expect capital expenditures in 2027 to be higher than in 2026. Later last month, Google once again raised its capital expenditure forecast for 2026, now expecting spending to be between $195 billion and $205 billion, up from the previous estimate of $180 billion to $190 billion ### Related Stocks - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOW.US](https://longbridge.com/en/quote/GOOW.US.md) - [GGLS.US](https://longbridge.com/en/quote/GGLS.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 - [Google nixes its Earth AI feature one day after launch, amid criticism it would spread misinformation](https://longbridge.com/en/news/294549600.md) - [Gemini agent digs a 13-year-old sandbox escape out of Chrome's code](https://longbridge.com/en/news/294501470.md) - [ZoomInfo Connector Provides GTM Context Layer for Buyer Intent with Gemini Enterprise | GTM Stock News](https://longbridge.com/en/news/294701412.md) - [PRESS DIGEST-New York Times business news - August 3](https://longbridge.com/en/news/294642651.md) - [DeepSeek's new AI model is by far the cheapest of well-known models to run, research firm says](https://longbridge.com/en/news/294645417.md)