India, Oct. 22 -- The money flowing into artificial intelligence (AI) far exceeds the revenue it currently generates, Nikhil Kamath has said. The Zerodha co-founder warned that 2027 could be a difficult year for startups and said "it won't be a bad idea" for entrepreneurs to raise funds now as access to capital could become difficult in the months ahead.

Speaking at the NDTV World Summit 2026, Kamath said the AI industry was attracting enormous investments but had yet to generate enough revenue to justify the spending.

"The amount of money going into AI and the money coming out of AI, there is a big gap in between that," he said.

Kamath estimated that around $1 trillion was being invested in AI annually, while revenue generated through...