Non-Tech Firms See Little Profit from AI

Large tech companies capture financial gains while other corporations struggle to see returns on heavy AI spending.

Updated on Oct. 31, 2026 in Artificial Intelligence

Isometric editorial illustration of a heavy industrial transformer, representing the high infrastructure costs for firms investing in artificial intelligence. — Apollo Global Management analysis indicates that non-technology firms struggle to convert artificial intelligence spending into profit, as costs for infrastructure mount. AI Illustration. Upload story photo >

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Do you believe investments in artificial intelligence will lead to better financial results for most businesses?

Apollo Global Management reports that non-technology corporations are failing to realize financial gains from artificial intelligence. While the seven major tech companies see rising profit margins, the rest of the S&P 500 remains flat.

Why it matters

Mainstream corporations have shifted their view on AI, now regarding heavy spending on advanced models as a cost center rather than a growth driver. Many businesses find that existing tools are sufficient for operations compared to costly frontier models.

Revenue per worker and profit margins are rising for the Magnificent Seven companies while remaining flat for the other 493 companies in the S&P 500. Additionally, CoreWeave has accumulated over $50 billion in debts while Goldman Sachs launches a $500 million AI push.

The players

Apollo Global Management

This is a global alternative investment manager that provides comprehensive financial analysis and asset management services.

CoreWeave

This company provides specialized cloud infrastructure designed for high-performance computing and large-scale AI workloads.

Goldman Sachs

This is a leading global investment banking and financial services firm that recently announced a major internal push into artificial intelligence.

Elon Musk

He is a prominent technology executive and investor who frequently comments on the financial viability of AI-focused infrastructure projects.

The details

Corporate entities are increasingly viewing AI infrastructure spending as a significant cost, driven by high demand for electricity and water needed to power data centers. Elon Musk has predicted that AI cloud computing companies face a future defined by death and consolidation.

October 31, 2026: Apollo Global Management published its analysis of AI financial performance.

The Tech Race

This performance gap highlights a widening divergence between the core technology sector and the broader corporate market. It signals a move away from universal AI adoption toward a market where only specific infrastructure-heavy players maintain a competitive advantage.

Businesses may pull back on AI-integrated features or subscription price increases if they cannot demonstrate internal profitability. Customers might notice slower integration of advanced AI services in non-tech products as companies prioritize cost-saving measures over innovation.

The takeaway

Corporations should focus on verifying the tangible return on investment for AI tools before committing to high-cost infrastructure. Simple, existing software often provides the necessary operational support without the heavy energy and maintenance costs of frontier models.