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Apollo Says AI Has Paid Off Nowhere Outside Tech: The S&P 493 Are Still Flat

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  • Apollo Says AI Has Paid Off Nowhere Outside Tech: The S&P 493 Are Still Flat
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Apollo Global Management's chief economist has put a number on the suspicion many finance chiefs have been voicing privately. In a note published October 24, Torsten Slok argued that artificial intelligence has delivered, in his words, zero financial payoff to corporate America outside of tech. TechCrunch reported the note on October 25. His test is deliberately plain: strip the Magnificent Seven out of the S&P 500, and the remaining 493 companies show flat profit margins, flat revenue per worker, and no sign in the productivity data that AI is moving the needle yet.

The gap in his charts is stark. Revenue per employee at the Magnificent Seven has climbed to roughly 780,000 dollars on an inflation-adjusted basis, against about 525,000 dollars for the S&P 493, and margins sit near 30 percent for the big tech firms against roughly 10 percent for everyone else. Summaries of the note also cite Ramp spending data showing how concentrated the buying still is: the top 10 percent of firms account for 99.5 percent of model serving and inference spend. In other words, the companies selling AI are getting richer from it, a small club of heavy spenders is experimenting at scale, and the broad economy is still waiting.

Slok is skeptical that lag alone explains the gap. He argues it will be hard for ordinary companies to turn increasingly cheap intelligence into higher revenue growth and higher profit margins, because, as he put it, AI may be a great calculator, but in business, intelligence is mostly judgment. He lists what models do not supply on their own: accountability, trust, culture, unwritten rules, ethical trade-offs and fairness, all of which shape reputational risk and, ultimately, revenue. That is a harder critique than the usual deployment complaint, because it questions the product, not just the rollout.

The same weekend brought a useful counterpoint from the vendor side. The Information reported that OpenAI is winning coding work from Anthropic customers with steep discounts, including Replit, on a contract worth more than 100 million dollars a year, and Rippling, where OpenAI's share of engineers' coding work reportedly rose from 16 percent in May to 52 percent while Anthropic's fell from 57 percent to 18 percent. Vendors would not be cutting price that hard if buyers treated frontier capability as priceless. It fits Slok's other observation: mainstream companies are starting to view token spending as a cost center, and many do not need, or will not pay for, the very latest model.

For people building with AI, the lesson is not to stop building. It is to stop selling tokens and start selling measured outcomes. The projects that survive a chief financial officer reading Slok's note are the ones wired into a specific workflow, with a baseline, a human who owns the judgment calls, and a line in the budget that the work visibly moves. Pilots that cannot name the margin, revenue or risk number they are supposed to change are exactly the spending now being questioned. Cheap intelligence is abundant. Deployments that turn it into accountable results are still rare, and that rarity is the business opportunity.

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Anthropic CEO Dario Amodei speaking on stage at a technology conference.

Anthropic unveiled Claude Duet on Wednesday, a standalone agent app that does not wait to be asked. Announced on October 21 and opening as a waitlisted research preview for United States subscribers on the Pro and Max plans, Duet monitors the apps you have connected, sends a briefing each morning, checks back every few hours, and alerts you when something needs your attention. It is built around Anthropic's Opus 5.5 model, runs on iOS, Android and claude.ai, and works in one ongoing thread that reuses the memory, skills and connectors from your Claude account.

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OpenAI Moves Into Google Cloud: The Frontier Is Now Sold Everywhere

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OpenAI announced on Wednesday, October 21, that its frontier models and its Codex agentic workflows are coming to Google Cloud's Model Garden, with general availability planned in the coming weeks and customers able to request access now. Google Cloud customers will be able to buy the models through Google Cloud Marketplace and draw the purchases down against existing Google Cloud spend commitments, and OpenAI said the models will soon also be available inside Google Antigravity and the Gemini Agent. Reuters reported that the offering includes OpenAI's latest models such as GPT-6 Astra.

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Anthropic Needs More Compute Than Its Own Cloud Partners Will Sell It

Anthropic CEO Dario Amodei speaking on stage at a technology conference.

Anthropic's problem, in its own draft IPO prospectus, is not demand. It is supply. The Wall Street Journal reported on October 20 that it had viewed the draft S-1, and TechCrunch summarized the filing the same day: Anthropic has sought more cloud capacity than Amazon Web Services, Google and Microsoft were willing to provide, in part because those partners increasingly see the Claude maker as a competitor rather than just a customer.

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