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Top economist warns that the AI math doesn’t make sense: 'Profits are currently being funded by investors rather than earned from customers'

AnnouncementProductAug 10, 2026

Apollo Chief Economist Torsten Slok found that silicon and equipment companies hold a 41% profit margin in the AI value chain, while models and applications companies have a -59% operating margin. Slok warns that AI profits are funded by investors rather than customers, creating instability. The Bank of International Settlements and analysts echo concerns that disappointing returns could trigger financing pullbacks, threatening the entire supply chain.

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Evidence

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Citation chain · 1 source

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fortune.comBloghttps://fortune.com/2026/08/10/torsten-slok-ai-profit-margins-capex-oracle/This source supplies Slok's original four-layer value chain breakdown and his core argument that upstream AI profits are funded by investor capital rather than customer demand.
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OpenAICompanyNvidiaCompanyAnthropicCompanyMicrosoftCompanyAmazonCompanyMicronCompanyAMDCompanyApolloCompanyTorsten SlokPersonConstellation EnergyCompany
Canonical: https://fortune.com/2026/08/10/torsten-slok-ai-profit-margins-capex-oracle/