Private equity giant says AI payoff remains strictly limited to Big Tech

Gains concentrated in tech

Apollo chief economist Torsten Slok says the Magnificent Seven may be seeing revenue per worker rise, while other S&P 500 companies are not. The group includes major hyperscalers, Apple, Nvidia and Tesla.

Slok also says the same split applies to profit margins and AI-related productivity growth. He posted charts to support those claims.

Evidence and objections

Some social media users disputed Slok’s account, saying it did not match their experience. Others compared the current pattern with the PC industry, where productivity gains followed widespread business adoption of computers by a decade or more.

Deloitte research has also found that AI tools have not improved the bottom line for most companies. Another report said businesses are demanding accountability for AI investments after several years with little or no return, and projects may be cut if they cannot prove their value.

Questions over AI economics

Slok questioned whether mainstream companies can turn AI projects into higher revenue growth and stronger margins, even as cheaper and open-source models become available. Apollo also points to slower growth in token spending. It says this suggests customers are sensitive to price and may reduce usage or switch to cheaper open-source alternatives after modest cost increases.

Data center investment concerns

The spending pattern raises questions about the returns from investing billions in additional datacenters. Apollo argues that the resulting computing capacity may produce only marginal profits if demand is highly price-sensitive. The company’s broader conclusion is that AI’s financial benefits remain concentrated in large technology firms, with no demonstrated payoff yet for US businesses beyond tech.