Google DeepMind executive cautions AI capex could outpace revenue, creating a painful shortfall

An Alphabet executive warned that the industry’s breakneck push into artificial intelligence infrastructure risks outrunning near-term revenue, potentially creating a painful gap before the technology’s next leap. Jasjeet Sekhon of Google DeepMind said a phase of recursive self-improvement could unlock new advances, but in the interim spending may exceed returns. Alphabet raised its 2026 capital-expenditure plan to $195 billion–$205 billion, while Amazon, Microsoft and Meta also flagged heftier 2027 budgets. With industrywide AI-related outlays expected to top $700 billion this year, investors are sharpening their focus on how quickly cloud and AI services can be monetized.

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