Torsten Slok, chief economist at Apollo Global Management, argues that the cost of AI computing may outweigh the benefits users receive. AI-related capital spending now accounts for about 2% of U.S. GDP, while companies in the sector account for a growing share of investment-grade bond issuance. Valuations therefore appear increasingly disconnected from uncertain financial returns. The shift toward safer assets, including U.S. government bonds, also reflects growing skepticism about AI’s profitability.
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