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AI boom profits funded by investors, not customers, says economist

By PulseAugur Editorial · [2 sources] ·

Torsten Slok, chief economist at Apollo Global Management, has observed that profit margins in the AI sector are highest when further removed from the end-user. This suggests that the current AI boom is primarily being financed by investors rather than generating revenue directly from customers. This dynamic implies a potential shift in how AI companies will need to monetize their technologies in the future. AI

IMPACT Suggests a potential disconnect between AI investment and customer-driven revenue, highlighting a need for future monetization strategies.

RANK_REASON Economist's opinion piece on AI profit margins.

Read on Mastodon — mastodon.social →

AI-generated summary · Google Gemini · from 2 sources. How we write summaries →

AI boom profits funded by investors, not customers, says economist

COVERAGE [2]

  1. Mastodon — fosstodon.org TIER_1 English(EN) · [email protected] ·

    1 Torsten Slok, chief economist, Apollo Global Management: In #AI , #profitmargins are higher the further you get from the end user. This is important because i

    1 Torsten Slok, chief economist, Apollo Global Management: In #AI , #profitmargins are higher the further you get from the end user. This is important because it means the #AI boom's profits are currently being funded by #investors rather than earned from #customers . 🧵

  2. Mastodon — mastodon.social TIER_1 English(EN) · [email protected] ·

    1 Torsten Slok, chief economist, Apollo Global Management: In #AI , #profitmargins are higher the further you get from the end user. This is important because i

    1 Torsten Slok, chief economist, Apollo Global Management: In #AI , #profitmargins are higher the further you get from the end user. This is important because it means the #AI boom's profits are currently being funded by #investors rather than earned from #customers . 🧵

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