DeepMind executive says trillion‑dollar AI spend is a bet on self‑improving machines

Key Points

• DeepMind CSO Jasjeet Sekhon says AI spending targets recursive self‑improvement (RSI).
• Alphabet spent $44.9 billion on capital projects in one quarter, raising 2026 guidance to $205 billion.
• Alphabet posted its first negative free cash flow, a $5.9 billion shortfall.
• Other hyperscalers—Amazon, Microsoft, Meta—are also increasing AI‑related capex.
• Sekhon warns of an "AI air pocket" where spending outpaces revenue.
• RSI aims for machines that can rewrite and upgrade themselves without human input.
• Critics question DeepMind’s ability to achieve full autonomous self‑improvement before rivals.
• Google Cloud revenue jumped 82 percent, backlog over $500 billion, showing demand despite research focus.