Private equity giant: AI payoff strictly limited to Big Tech
The Magnificent Seven are galloping off with the profits, while the rest of the S&P 500 see no benefit, claims Apollo
Apollo Global Management, a prominent private equity firm, asserts that artificial intelligence (AI) has yet to generate any significant financial gains for US businesses outside the technology sector. In a blog post, the firm's chief economist Torsten Slok argues that revenue per worker may be increasing for the so-called "Magnificent Seven" tech companies, which includes hyperscalers, Apple, Nvidia, and Tesla.
However, this trend is not observed in the remainder of the S&P 500 businesses. Slok emphasizes that AI has not positively impacted profit margins or boosted corporate productivity growth for non-tech firms. The investment firm's claims have faced skepticism from some, who question the validity of Slok's perspective.
Written by urgent.news from The Register Science's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
