Alphabet NASDAQ:GOOG is facing fresh scrutiny over the scale of AI investment as a Google executive warned that current spending could outpace revenue growth before the technology delivers its next major advance.
Jasjeet Sekhon, a Google DeepMind executive, said heavy industry spending on AI infrastructure could lead to a period where investment rises faster than related revenue. He described recursive self-improvement, in which AI systems help build more capable versions of themselves, as a potential next phase.
The comments come as major technology companies continue expanding capital budgets. Alphabet recently lifted its 2026 spending forecast to $195 billion to $205 billion, up from its previous range of $180 billion to $190 billion.
Amazon NASDAQ:AMZN, Microsoft NASDAQ:MSFT and Meta Platforms NASDAQ:META have also indicated that their capital spending could increase in 2027. The broader industry is expected to spend more than $700 billion on AI-related infrastructure this year, raising questions about how quickly those investments can generate returns.