BIG TECH IS CASHING IN ON AI WHILE THE REST OF CORPORATE AMERICA SEES NO FINANCIAL RETURNS REPORT OUTLINES HOW RISING TOKEN COSTS THREATEN TO SQUEEZE CORPORATE PROFIT MARGINS

What happened: An Apollo Daily Spark analysis by chief economist Torsten Slok found AI spending is generating revenue for technology providers, while most other S&P 500 companies show no comparable gains in productivity or profit margins. Key numbers: Revenue per worker and profit margins are rising for the Magnificent Seven but flat across Why it matters: Slok said mainstream companies are starting to view token spending as a cost center, and rising AI expenses without measurable performance gains could weigh on margins. He said the AI story will be decided in the S&P 493, not the Mag 7.

An Apollo Daily Spark analysis by chief economist Torsten Slok found AI spending is generating revenue for technology providers, while most other S&P 500 companies show no comparable gains in productivity or profit margins.

Slok said mainstream companies are starting to view token spending as a cost center, and rising AI expenses without measurable performance gains could weigh on margins. He said the AI story will be decided in the S&P 493, not the Mag 7.