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After AGI, Silicon Valley Finds Another Rationale for Capital Spending

2026-08-09·newswire-us-stock-022002
After AGI, Silicon Valley Finds Another Rationale for Capital Spending.

Jasjeet Sekhon, chief strategy officer at Google DeepMind, recently said recursive self-improvement, or RSI, is becoming the core investment rationale for AI capital spending.

He acknowledged that the revenue generated by AI so far is “not yet enough to support the capital spending we are making.” But given the technology’s current and future development, he said it would be unwise not to invest. Google’s large capital expenditures are therefore a bet on the broader direction of RSI, short for Recursive Self-Improvement.

In plain terms, RSI refers to AI’s ability to improve itself.

#Stocks #Google #AI #Earnings

Full text

After AGI, Silicon Valley Finds Another Rationale for Capital Spending

Jasjeet Sekhon, chief strategy officer at Google DeepMind, recently said recursive self-improvement, or RSI, is becoming the core investment rationale for AI capital spending. He acknowledged that the revenue generated by AI so far is “not yet enough to support the capital spending we are making.” But given the technology’s current and future development, he said it would be unwise not to invest. Google’s large capital expenditures are therefore a bet on the broader direction of RSI, short for Recursive Self-Improvement. In plain terms, RSI refers to AI’s ability to improve itself.

Jasjeet Sekhon, chief strategy officer at Google DeepMind, recently said recursive self-improvement, or RSI, is becoming the core investment rationale for AI capital spending.

He acknowledged that the revenue generated by AI so far is “not yet enough to support the capital spending we are making.” But given the technology’s current and future development, he said it would be unwise not to invest.

Google’s large capital expenditures are therefore a bet on the broader direction of RSI, short for Recursive Self-Improvement. In plain terms, RSI refers to AI’s ability to improve itself.

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