Full Breakdown
AI Investment Returns Split Between Tech Giants and the Rest of the S&P 500
By Drooid · · How we work
Core Findings on AI Payoff Across the S&P 493
Apollo Global Management’s chief economist Torsten Slok argues that the massive AI build-out has produced “zero payoff” for corporate America outside the technology sector. In his recent note, he notes that revenue per worker and profit margins are rising for the “Magnificent Seven” firms but remain flat for the other 493 companies in the S&P 500. Slok also reports no evidence that AI is lifting overall productivity growth. Token-based AI spending, a proxy for AI usage, showed virtually no growth in August and September, then a modest 23 % rise in weekly spending and a 52.4 % jump in token volume between mid-September and early-October, while the blended price for OpenAI and Anthropic tokens fell 25.4 % to $0.64 per million. These figures reflect a subset of businesses that use AI token-spending tools and do not isolate AI’s impact on individual firms.
Meta’s Counterpoint: AI Contributing to Revenue Growth
Meta’s third-quarter 2026 results present a contrasting picture. The company reported revenue of $64.60 billion, up 26 % year-over-year, and indicated that AI investments are already adding incremental advertising revenue through stronger engagement and recommendations. Capital expenditures totaled $34.91 billion, including finance-lease payments, while operating cash flow was $32.79 billion, leaving a negative free cash flow of $2.12 billion. Meta’s chief executive Mark Zuckerberg emphasized that the firm’s core business remains strong and that AI investments are “paying off.”
Data & Statistics
- Revenue per worker & margins: rising for Magnificent Seven, flat for S&P 493 (Slok).
- Token spending: flat Aug-Sept, +23 % weekly spend, +52.4 % token volume (Oct vs Sept), price down 25.4 % to $0.64 / million.
- Meta Q3 2026: revenue $64.60 B (+26 % YoY), capex $34.91 B, operating cash flow $32.79 B, free cash flow –$2.12 B.
Official Statements & Responses
Zuckerberg counters that Meta’s AI-enhanced products are already boosting advertising revenue and overall business velocity.
Verbatim Quotes
- “Mainstream corporate America is pulling back and starting to view token spending not as a source of growth but as a cost center that weighs on margins,” — Torsten Slok, chief economist
- “Our investments are paying off, the core business is strong, and we're seeing velocity across the board.” — CEO Mark Zuckerberg