Big Tech is cashing in on AI while the rest of corporate America sees no financial returns
Revenue per employee at the Magnificent Seven has outpaced the S&P 493, and a new comparison highlights the growing divide in fortunes between America’s largest technology companies and the rest of the S&P 500.
A recent report by Apollo Global Management has revealed that while big tech companies are profiting from AI investment, most other S&P 500 firms have not seen comparable financial gains. AI spending is driving revenue for tech providers, but productivity and profit margins remain flat across the broader corporate sector. Apollo's Torsten Slok attributed this discrepancy to AI's lack of tangible impact on productivity and trust issues, making it difficult for established companies to justify continued investment.
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