Torsten Slok, chief economist at Apollo Global Management, has expressed concerns regarding the financial sustainability of the artificial intelligence industry. He suggests that the high costs associated with AI computing power may currently exceed the actual benefits delivered to end users.
Capital expenditure related to AI now represents approximately 2% of the United States GDP. Furthermore, companies linked to the AI sector are increasingly contributing to the total volume of bond issuances, raising questions about whether current industry valuations are sustainable.
Market participants are shifting their focus toward safer assets, such as U.S. government bonds, indicating growing skepticism regarding the profitability of AI firms. Investors are closely watching major players like Anthropic for updates on funding rounds and strategic partnerships.
Recent market activity reflects this caution, with reports of CoreWeave stock declining by 30% amid refinancing concerns. Future sentiment will likely be influenced by upcoming financial disclosures, potential revenue shifts, and major corporate announcements from key industry participants.
