GoKawiilApollo analysis: AI profits concentrated in Magnificent Seven, not broader S&P 500
Apollo Global Management's chief economist Torsten Slok reported on October 24 that revenue per worker and profit margins are climbing for the Magnificent Seven tech stocks while staying flat across the other 493 S&P 500 companies. Slok said heavy AI investment has produced no measurable productivity gains outside the tech sector, with many firms now treating AI token spending as a cost rather than a growth driver.
GoKawiil's interpretation of the reporting above, not reported fact.
The findings suggest a widening gap between AI infrastructure providers and the companies paying to use their tools, which could pressure enterprises to scale back spending if returns don't materialize soon. If non-tech firms increasingly view token costs as expenses to minimize rather than investments to grow, that could challenge the revenue assumptions underpinning major AI providers' valuations.
- Magnificent Seven stocks show rising revenue per worker and profit margins; other S&P 500 firms show none, per Apollo's Slok.
- Slok found no clear evidence AI is lifting productivity growth across corporate America despite heavy investment.
- Non-tech companies are reportedly treating AI token usage as a cost center, favoring cheaper model alternatives over premium ones.
Source: tomshardware.com — Newton Gitonga, 2026-10-25
Published there as: “Big Tech is cashing in on AI while the rest of corporate America sees no financial returns”
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