AI Has Given Zero Return for Non-Tech US Firms, Economist Says
Torsten Slok, chief economist at Apollo Global Management, stated that artificial intelligence has yielded zero corporate return for United States companies outside of the technology sector itself, according to Bloomberg. The assessment highlights a widening divide between a handful of mega-cap tech stocks and the rest of the corporate economy.
S&P 500 Performance Split Highlights Market Disconnect
The argument rests on a stark divergence within the S&P 500 index. While the “Magnificent Seven” technology giants enjoy rising revenue per worker and expanding profit margins driven by AI investments, the remaining 493 companies show stagnant metrics. Slok noted that productivity gains and profit margins for the broader index remain entirely unchanged by the new technology.
Traditional corporations are increasingly viewing AI expenditures—measured in tokens—as an unwelcome cost burden rather than a growth engine. Small startups and venture-backed firms continue to increase their token spending, but legacy businesses refuse to pay for premium models they do not need, according to Bloomberg.
AI Infrastructure Spending Risks Trillion Dollar Revenue Gaps
Market research firm Gartner estimated that over 3.5 trillion dollars in AI infrastructure could face asset impairment by 2030 if revenue fails to match spending. Bloomberg data building on Gartner’s figures points to a 4.9 trillion dollar revenue gap, noting that data center operators require 8.5 trillion dollars through the end of the decade to cover costs and achieve a 12 percent return. Despite lingering optimism regarding AI as a market driver, investors continue to question when and if massive capital outlays will translate into bottom-line profits.