Apollo Global Management analyst Torsten Slok finds that AI delivers zero financial payoff for most companies outside the Magnificent Seven. Revenue per employee at the seven big tech firms climbed from $550,000 in 2022 to nearly $800,000 in 2026, while the figure for the other 493 S&P 500 companies stayed flat around $550,000 since 2019. Slok notes that mainstream corporations now treat AI token spending as a cost center rather than a growth engine.
Goldman Sachs adds that the AI boost to U.S. economic growth will likely peak in late 2026 or early 2027. The firm estimates that AI-linked borrowing is pushing long-term interest rates higher, which could subtract 0.6% from GDP. Meanwhile, a Gartner survey found only 13% of companies reported substantial value from AI, and by 2026, 89% of executives plan to use AI agents but most will require human approval before letting them act.
On the infrastructure front, Mubbadrah Investment is leading a consortium to build a 400MW AI data center in Oman with an initial investment of $3 billion. Partners include Sustopia Capital, Vela Tech and O2 Global Energy. The facility will combine grid power with 400MW of solar energy and battery storage, targeting hyperscalers for AI training and inference workloads.
Nvidia is planning a $2 billion investment in European AI initiatives, on top of $8 billion already committed to the continent. Founder Jensen Huang announced funding for French start-ups Doctolib, Genesis AI, Pigment and Entalpic, and promoted open-source models as a path for Europe to compete with the U.S. Nvidia also maintains a major partnership with French company Mistral AI.
High-frequency traders are racing to secure AI computing power, with firms like Jane Street and Hudson River Trading building data centers and backing chip startups. One executive says compute spending is now ten to twenty times higher than before ChatGPT. XTX Markets is building a data center in Finland, and Jane Street led a funding round for chip startup Etched, becoming its first customer.
Colorado State University researchers are developing an AI forecasting system that could predict hailstorms hours or days in advance, compared to the less than 30 minutes current models typically provide. Funded by the National Science Foundation, the project combines radar data with nine years of U.S. weather observations and uses machine learning to identify patterns from past destructive storms.
Anthropic is scouting locations in Western Australia for its first international AI data center. Local leaders, including the mayor of a small town, are working to address community concerns about the facility's impact while promoting the potential benefits of advanced AI technology.
A reader writing about AI and thinking skills argues that tools like Microsoft Copilot and Google search can help people when used with discretion. The writer draws a parallel to how GPS changed navigation, suggesting that AI should be embraced carefully rather than feared for weakening critical thinking abilities.
A federal judge dismissed a whistleblower lawsuit against the L.A. Film School after the school's lawyers submitted AI-generated briefs containing fake citations. The judge fined the lawyer for neglecting duties and ignoring court orders. The whistleblowers had claimed the school inflated job placement statistics to maintain federal loan eligibility.
RingCentral stock has tripled year-to-date on strong AI-driven fundamentals, and analysts see further upside despite the rally. Investors are advised to buy RNG shares as valuations remain attractive. The broader AI trade shows signs of cracking, which could benefit small caps in overlooked sectors.
Key Takeaways
- Apollo analyst Torsten Slok finds zero financial payoff from AI outside the Magnificent Seven, with revenue per employee flat at $550,000 for the S&P 493 since 2019
- Goldman Sachs predicts the AI growth boost will peak in late 2026 or early 2027 and estimates AI-linked borrowing could subtract 0.6% from GDP
- Only 13% of companies reported substantial AI value in a Gartner survey, and 89% of executives plan to use AI agents by 2026 but most will require human approval
- Mubbadrah Investment leads a $3 billion consortium to build a 400MW AI data center in Oman using solar and grid power
- Nvidia plans $2 billion in additional European AI investment, funding French start-ups Doctolib, Genesis AI, Pigment and Entalpic
- High-frequency traders are spending ten to twenty times more on compute than before ChatGPT, with XTX Markets building a data center in Finland
- Colorado State University develops an AI hail forecasting system that could provide hours or days of warning versus current 30-minute models
- Anthropic scouts Western Australia for its first international AI data center amid local community discussions
- A federal judge dismisses an L.A. Film School lawsuit after lawyers submit AI-generated briefs with fake citations and get fined
- RingCentral stock triples year-to-date on AI-driven growth, with analysts seeing further upside as the AI trade shows signs of cracking
Apollo finds zero AI payoff outside the Magnificent Seven
Apollo Global Management economist Torsten Slok compared the Magnificent Seven with the other 493 S&P 500 companies. Revenue per employee and profit margins rose for the M7 but stayed flat for everyone else. Only 13% of companies reported substantial value from AI in a Gartner survey. Slok said companies now see AI token spending as a cost rather than a growth driver.
Goldman and Apollo say AI gains are fading outside Big Tech
Goldman Sachs says the AI boost to U.S. growth will peak in late 2026 or early 2027. Apollo's Torsten Slok found zero financial payoff from AI outside the tech sector. Revenue per worker is rising for the Magnificent Seven but flat for the S&P 493. AI-linked borrowing is pushing up long-term interest rates, Goldman estimates it will subtract 0.6% from GDP.
Apollo says AI shows zero payoff outside the tech sector
Corporate America has invested heavily in AI but seen little result outside of big tech. Apollo analyst Torsten Slok said revenue per worker is rising for the Magnificent Seven but flat for the S&P 493. Mainstream companies now view token spending as a cost center. By 2026, 89% of executives use AI agents but most will not let them act without human approval.
Apollo analysis shows AI benefits limited to big tech giants
Apollo analyst Torsten Slok found no financial payoff from AI for most corporate America. Revenue per employee at the Magnificent Seven jumped from $550,000 in 2022 to almost $800,000 in 2026. But the figure stayed flat at about $550,000 for the S&P 493 since 2019. Slok said AI still struggles with judgment, ethics and trust that businesses need.
Mubbadrah Investment leads $3 billion Oman AI data center project
Mubbadrah Investment is leading a consortium to build a large-scale AI data center in Oman. The project has a planned capacity of up to 400 MW and an initial investment of $3 billion. Sustopia Capital, Vela Tech and O2 Global Energy are partners in the project. The data center will use a blend of grid and renewable energy including 400 MW of solar power.
Oman consortium to build 400MW AI data center
Mubbadrah Investment is leading a group of Omani and international companies to build a 400MW AI data center in Oman. The project includes Sustopia Capital, Vela Tech and O2 Global Energy. The initial investment is US$3bn. The center will use grid power and 400MW of solar energy with battery storage. It is designed for hyperscalers and will host AI training and inference workloads.
CSU develops AI system for hail forecasting
Colorado State University researchers are building an AI forecasting system to predict hailstorms hours or days ahead. Current models often give less than 30 minutes of warning. The project is funded by the National Science Foundation. It combines radar data with nine years of U.S. weather observations. The system uses machine learning to identify patterns from past destructive storms.
Opinion on AI and thinking skills
A reader argues that AI tools can help people when used carefully. The writer mentions using Microsoft Copilot to organize a book. The piece responds to concerns that AI may weaken young people's ability to think. The writer believes tools like Google search and GPS have also changed how people work. The main point is that AI should be used with discretion.
Nvidia plans $2 billion investment in European AI
Nvidia is planning to invest $2 billion in European AI initiatives. This adds to $8 billion the company already committed to the continent. Nvidia founder Jensen Huang announced funding for French start-ups Doctolib, Genesis AI, Pigment and Entalpic. He also promoted open-source AI models as a way for Europe to compete with the US. Nvidia is a major partner of French company Mistral AI.
Wall Street traders invest in AI data centers and chips
High-frequency traders like Jane Street and Hudson River Trading are racing for AI computing power. Some firms are building data centers and backing chip startups. One executive says compute spending is now ten to twenty times higher than before ChatGPT. XTX Markets is building a data center in Finland. Jane Street led a funding round for chip startup Etched and became its first customer.
L.A. Film School fraud suit dismissed as lawyer fined for AI use
A federal judge threw out a whistleblower lawsuit against the L.A. Film School. The school's lawyers used AI-generated briefs with fake citations. The judge fined the lawyer for neglecting his duties and ignoring court orders. The whistleblowers claimed the school inflated job placement stats to keep federal loan eligibility. The judge found the claimants failed to provide details about Full Sail University.
Anthropic considers Australia for its first international AI data center
Anthropic is scouting locations in Western Australia for its first international AI data center. The mayor of a small town is trying to convince residents that the facility is a good idea. The project faces challenges despite the potential for advanced AI technology. Local leaders must address concerns about the data center's impact on the community.
How to make responsible AI adoption the easiest path
Many companies struggle with shadow AI, where employees use unapproved AI tools outside governance frameworks. This creates risks for data breaches and sensitive information leaks. The best approach is to provide approved AI tools that are easy to use and access. Organizations should implement clear policies, training, and oversight to ensure safe AI usage.
RingCentral stock remains cheap despite strong AI-driven growth
RingCentral stock has tripled year-to-date but analysts see further upside potential. The company's Q3 earnings showed strong fundamentals justifying the rally. Investors are advised to buy RNG shares as the valuation remains attractive. The AI trade shows signs of cracking, benefiting small caps in overlooked sectors.
Sources
- Apollo: "AI Investment Boom Delivers Virtually Zero Results Outside the Magnificent Seven"
- AI’s boost to the U.S. economy is nearing its peak, Goldman says, as Apollo finds ‘zero financial payoff’ outside Big Tech
- Apollo Says AI Has Shown 'Zero' Payoff Outside Tech
- Apollo analysis shows no one besides the biggest tech giants is seeing benefits from AI
- Mubbadrah Investment leads $3bn Oman AI data centre consortium
- ZAWYA: Oman: Mubbadrah Investment leads consortium to develop 400MW AI data centre
- CSU uses artificial intelligence to improve hail forecasting
- Opinion | Is AI undermining our ability to think?
- Nvidia is looking to invest $2 billion in European AI
- Wall Street's fastest traders are building data centers and backing chip startups to stay ahead in AI
- L.A. Film School Fraud Suit Tossed as Lawyer Fined for AI Use
- Anthropic taps a deep well of distrust as it eyes its Australian AI debut
- Making Responsible AI Adoption the Easiest Path
- RingCentral: Even After The Surge, This AI-Driven Stock Remains Cheap
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